The company is evaluating two strategic investments. Project C requires an initial investment of $35,000, and Project D requires $32,000.

Yearly Cash Flows

• Year 1: Project C - $10,000; Project D - $12,000
• Year 2: Project C - $12,500; Project D - $9,000
• Year 3: Project C - $13,000; Project D - $8,000
• Year 4: Project C - $9,000; Project D - $7,000

Requirements: (a) Compute the NPV for both projects using a discount rate of 16%. (b) Determine the IRR for both projects. (c) Based on the NPV and IRR, which project is more attractive? (d) Evaluate the sensitivity of the NPV to changes in the discount rate. (e) Discuss the strategic implications of selecting one project over the other.