The Allied Group is considering two investments. The first investment involves a packaging machine, which can be used to package garments for shipping orders to customers. The second possible investment would be a molding machine that would be used to mold the mannequin parts.

The first possible investment is the packaging machine, which will cost $14,000. The second investment, the molding machine, would cost $12,000. The expected cash flows for the two projects are given below and the cost of capital to the firm is 15%. Both machines will be unusable after five years and have no salvage value.
The net cash flows for the two possible projects are given in the following table:

Year   Packaging Machine  Molding Machine 
0                          ($14000)                            ($12,000)
1                             4100                                     3200
2                             3300                                     2800
3                             2900                                     2800              
4                             2200                                     2200
5                             1200                                     2200

Address all of the following questions in a brief but thorough manner.

• What is each project's payback period? Provide a detailed explanation of how you calculated the payback period for each. 
• What is the NPV for each project? Provide a detailed explanation of how you calculated the payback period for each.
• What is the IRR for each project? Provide a detailed explanation of how you calculated the internal rate of return (IRR) for each.