Assume Projects C and D are being considered by a company. The data for the projects are:

	Project C	Project D
Cost of Capital	11%	12%
Initial Investment	$130,000	$160,000
Cash Inflow Year 1	$60,000	$50,000
Cash Inflow Year 2	$50,000	$60,000
Cash Inflow Year 3	$40,000	$80,000

a. Determine the payback period for both projects.
 b. Calculate the NPV for both projects using the respective cost of capital.
 c. Find the IRR for both projects.
 d. Calculate the profitability index for both projects.
 e. Provide a recommendation on which project should be accepted and justify your choice.