A company has $250,000 to be invested in either Project A or Project B with the following cash flows:

Year	Project A	Project B
1	$50,000	$20,000
2	$50,000	$40,000
3	$50,000	$80,000
4	$50,000	$100,000
5	$50,000	$60,000

The current cost of capital is 10%.

Required:

1. Calculate for each project the:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Based on your results, advise the firm on the better investment option.