A company has $260,000 available for investment in either project S or project T, with the following cash flows:

Year	Project S	Project T
1	$80,000	$35,000
2	$80,000	$65,000
3	$80,000	$95,000
4	$80,000	$85,000
5	$80,000	$55,000

The discount rate is 13%.

Required: a. Calculate for each project:

• Simple payback period
• Discounted payback period
• Net present value
• Internal rate of return
• Profitability index b. Provide a recommendation on which project to invest in.