Consider the following cash flows for project Q and project R:

Project Q:

• Initial investment: -$75,000
• Year 1: $15,000
• Year 2: $20,000
• Year 3: $25,000
• Year 4: $30,000
• Year 5: $35,000

Project R:

• Initial investment: -$90,000
• Year 1: $18,000
• Year 2: $23,000
• Year 3: $28,000
• Year 4: $33,000
• Year 5: $38,000

a. Calculate the NPV, IRR, and traditional payback period for each project, using a required rate of return of 12 percent.

b. Which project(s) should be selected if they are independent, and which should be selected if they are mutually exclusive?