A company has $220,000 to invest in either Project I or Project J, with the following cash flows:

Year	Project I	Project J
1	$40,000	$20,000
2	$40,000	$30,000
3	$40,000	$40,000
4	$40,000	$50,000
5	$40,000	$60,000

The cost of capital is 9%.

Required: a) Determine for each project:

• Simple payback period
• Discounted payback period
• Net present value
• Internal rate of return
• Profitability index

b) Recommend the better project for the company to invest in based on the results.