A firm has $250,000 to invest in Project G or Project H. The cash flows are expected as follows:

Year	Project G	Project H
1	$80,000	$20,000
2	$80,000	$30,000
3	$80,000	$50,000
4	$80,000	$100,000
5	$80,000	$55,000

The firm's cost of capital is 11%.

Required:

a) Calculate the following for each project:

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

b) Recommend which project should be undertaken based on the calculated metrics.