A company is considering investing $300,000 in either Project A or Project B with the following cash flows:

Year	Project A	Project B
1	$90,000	$20,000
2	$90,000	$50,000
3	$90,000	$70,000
4	$90,000	$150,000
5	$90,000	$60,000

The current cost of capital is 10%.

Required:

a) Calculate for each project the:

• Simple payback period
• Discounted payback period
• Net present value
• Internal rate of return
• Profitability index

b) Based on your results in (a) above, advise the firm.