A firm is evaluating Project X and Project Y with the following details:

• Project X: Initial Investment $90,000, Cash Inflows: Year 1 - $20,000, Year 2 - $30,000, Year 3 - $40,000.
• Project Y: Initial Investment $110,000, Cash Inflows: Year 1 - $30,000, Year 2 - $40,000, Year 3 - $50,000.

Requirements:

1. Calculate the payback period for each project.
2. Calculate the net present value (NPV) of each project at a discount rate of 8%.
3. Calculate the internal rate of return (IRR) for each project.
4. Calculate the profitability index (PI) for each project.
5. Make a recommendation based on the calculations.