A firm is evaluating the investment of $275,000 in Project Q or Project R with the following cash flows:

Year	Project Q	Project R
1	$85,000	$20,000
2	$85,000	$32,000
3	$85,000	$55,000
4	$85,000	$120,000
5	$85,000	$50,000

The cost of capital is 11%.

Required:

1. Calculate for each project:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Advise the firm based on your calculations.