A firm is considering an investment of $250,000 in either project C or project D with the following expected cash flows:

Year	Project C	Project D
1	$80,000	$20,000
2	$80,000	$60,000
3	$80,000	$120,000
4	$80,000	$100,000
5	$80,000	$50,000

The discount rate is 15%.

Required: a. Determine for each project:

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

Profitability index b. Provide a recommendation based on the analysis.