As a financial advisor for Gamma Ltd., you have to assess two projects, Projects P and Q. Each project requires an initial outlay of $200,000, and the discount rate is 12 percent. The expected net cash flows are shown below:

Expected Net Cash Flows

Year	Project P	Project Q
0	($200,000)	($200,000)
1	100,000	90,000
2	80,000	70,000
3	60,000	50,000
4	40,000	30,000

i) Determine the payback period, NPV, and IRR for each project.
 ii) Discuss which project is more attractive based on the NPV.
 iii) Evaluate the projects if they are mutually exclusive.
 iv) Analyze the effect on NPV if the cash flows for each year are reduced by 10 percent.
 v) Comment on the risk factors that should be considered for these projects.