An investment opportunity requires $230,000 to be invested in either project O or project P with the following cash flows:

Year	Project O	Project P
1	$60,000	$30,000
2	$60,000	$60,000
3	$60,000	$80,000
4	$60,000	$100,000
5	$60,000	$90,000

The discount rate is 12%.

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 the best project to undertake based on the analysis.