Capital Investment Analysis (in £):

Projects	Initial Outlay	Year 1	Year 2	Year 3	Year 4
C	-£25,000	£7,000	£8,000	£9,000	£10,000
D	-£30,000	£6,000	£7,000	£8,000	£9,000

Required:

1. Calculate the payback period for each project.
2. Identify the preferred project if the standard payback period is 2.5 years.
3. Compute the NPV at a discount rate of 11%.
4. Determine the IRR for each project.
5. Calculate the profitability index (PI) for both projects.