A business is considering two projects, C and D, with an investment of $300,000. The cash flows for each project are as follows:

Project C:

•Year 1: $90,000

•Year 2: $90,000

•Year 3: $90,000

•Year 4: $90,000

•Year 5: $90,000

Project D:

•Year 1: $30,000

•Year 2: $50,000

•Year 3: $100,000

•Year 4: $150,000

•Year 5: $80,000

The discount rate is 15%.

Required:

1.Determine the payback period for both projects.

2.Compute the discounted payback period for both projects.

3.Calculate the net present value (NPV) for both projects.

4.Find the internal rate of return (IRR) for both projects.

5.Assess the profitability index for both projects.

c) Recommend which project should be selected based on your findings.