The following table shows two projects of the organization for a period of five years. The organization will get a loan at an interest rate of 7%.

1. Calculate the NPV(Net Present Value) for each project 2. Find out the IRR (Internal Rate of Return)for each project 3. Compute the Payback Period how many years approximately 4. Make a decision on what project is more interesting, what is the reason?

Please give me the calculation process in order to understand, thank you.

Year O 1 Cash Flow Project A ($) (20,000) 4,500 5,400 5,400 4,500 5,000 Cash Flow Project B ($) (22,000) 6,000 5,700 5,500 5,000 4,500 w N 4 5