A company has $340,000 to invest in either Project Q1 or Project R1. The cash flows are as follows:

Project Q1 generates cash flows of $90,000 each year for five years. Project R1 generates cash flows of $30,000 in the first year, $60,000 in the second year, $120,000 in the third year, $170,000 in the fourth year, and $80,000 in the fifth year. The discount rate is 8%.

Required:

1. For each project, calculate the:
   • Simple payback period
   • Discounted payback period
   • Net present value
2. Prepare a cash flow statement for the chosen project over the five years.
3. Advise the company on which project to select based on the results of your calculations.