Consider the following investment projects:

Year	Project U	Project V	Project W	Project X
0	-6,000	-8,000	-10,000	-12,000
1	1,800	2,000	2,500	3,000
2	2,000	2,500	3,000	3,500
3	2,500	3,000	3,500	4,000
4	3,000	3,500	4,000	4,500

Required:

1. Determine the payback period for each project.
2. If the payback period criterion is 2 years, which project should be selected?
3. Compute the discounted payback period at a 10% discount rate.
4. Calculate the NPV for each project at a 10% discount rate. Which project has the highest NPV?
5. Based on the NPV criterion, which project should be chosen?