Analyze the following projects based on the given cash flows:

Year	Project L	Project M	Project N
Initial Outlay	-$20,000	-$22,000	-$25,000
Year 1	$6,000	$7,000	$8,000
Year 2	$7,000	$7,000	$9,000
Year 3	$8,000	$8,000	$10,000

Required:

1. Calculate the payback period for each project.
2. Compute the NPV for each project at a discount rate of 8%.
3. Determine the IRR for each project.
4. Find the profitability index for each project.
5. Recommend which project(s) should be selected based on the NPV criterion.