Background: A firm is evaluating two mutually exclusive projects, K and L. The initial investment for Project K is $5,000, and for Project L, it is $7,000. The projects' expected cash flows over four years are provided below. Calculate the NPVs using a discount rate of 18%.

Cash Flows:

Year	Project K	Project L
0	-$5,000	-$7,000
1	$1,500	$2,000
2	$2,000	$3,000
3	$2,500	$4,000
4	$3,000	$5,000

Requirements:

1. Calculate the NPV for each project using a discount rate of 18%.
2. State your accept/reject decision for each project.
3. If the projects were independent, what would be your accept/reject decision?