Consider a company that can invest $220,000 in either project I or project J. The expected cash flows are as follows:

Year	Project I	Project J
1	$70,000	$30,000
2	$70,000	$60,000
3	$70,000	$80,000
4	$70,000	$90,000
5	$70,000	$50,000

The company’s cost of capital is 9%.

Required:

1. Determine for each project:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
   • Profitability index
2. Advise on the preferred project based on the computed values.