A company has $300,000 to invest in either Project A or Project B. The cash flows are as follows:

Year	Project A	Project B
1	$90,000	$40,000
2	$90,000	$60,000
3	$90,000	$120,000
4	$90,000	$180,000
5	$90,000	$80,000

The discount rate is 10%.

Required:

1. For each project, calculate the:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Prepare a comparative income statement for both projects over the five years.
3. Advise the firm on which project to select based on the results of your calculations.