A business has $350,000 to be invested in either Project M or Project N with the following cash flows:

Year	Project M	Project N
1	$90,000	$22,000
2	$90,000	$40,000
3	$90,000	$65,000
4	$90,000	$140,000
5	$90,000	$55,000

The current cost of capital is 12%.

Required:

1. For each project, calculate:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Recommend which project to undertake.