The following cash flows are given for two investment options, I and J:

• Project I:
  • Initial Investment: $20,000
  • Year 1: $6,000
  • Year 2: $7,000
  • Year 3: $8,000
  • Year 4: $9,000
• Project J:
  • Initial Investment: $18,000
  • Year 1: $5,000
  • Year 2: $6,000
  • Year 3: $7,000
  • Year 4: $8,000

(a) Determine the NPV for both projects using a discount rate of 12%.

(b) Provide the accept/reject decision for each project.

(c) Calculate the payback period for both projects.

(d) Calculate the IRR for both projects.

(e) Discuss the implications of your findings.