An organization plans to invest $400,000 in either Project E or Project F. The following cash flows are anticipated:

Year	Project E	Project F
1	$100,000	$25,000
2	$100,000	$45,000
3	$100,000	$85,000
4	$100,000	$170,000
5	$100,000	$75,000

The discount rate is 14%.

Required:

1. Determine for each project:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Which project should the organization select and why?