A business is considering investing $210,000 in either project Q or project R with the following expected cash flows:

Year	Project Q	Project R
1	$65,000	$20,000
2	$65,000	$55,000
3	$65,000	$90,000
4	$65,000	$110,000
5	$65,000	$75,000

The cost of capital is 10%.

Required:

1. Determine for each project:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Advise on the most favorable project based on the analysis.