A company is analyzing the investment of $160,000 in either Project O or Project P. The projected cash flows are as follows:

Year	Project O	Project P
1	$50,000	$12,000
2	$50,000	$28,000
3	$50,000	$47,000
4	$50,000	$100,000
5	$50,000	$43,000

The discount rate is 10%.

Required:

1. Calculate for each project:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Which project should the company choose and why?