Alpha Ltd is evaluating two investment options: E and F. Both require an initial outlay of $80,000 and have a useful life of 6 years. The firm’s discount rate is 12%. The expected cash flows are:

Year	Project E	Project F
1	$25,000	$30,000
2	$24,000	$28,000
3	$23,000	$26,000
4	$22,000	$24,000
5	$21,000	$22,000
6	$20,000	$20,000

Requirements:

1. Calculate the NPV for each project.
2. Determine the IRR for each project.
3. Compute the Discounted Payback Period for each project.
4. Evaluate the Profitability Index (PI) for each project.
5. Recommend which project should be selected.