Delta Inc. is evaluating two investment opportunities, Project C and Project D:

Project C:

Year	Cash Flow ($)
0	-200,000
1	40,000
2	60,000
3	100,000
4	120,000

Project D:

Year	Cash Flow ($)
0	-180,000
1	50,000
2	70,000
3	90,000
4	110,000

The discount rate is 9% for Project C and 11% for Project D.

a) Determine the payback period for each project.

b) Calculate the profitability index for each project.
 ii. Which project should be accepted based on the profitability index?

c) Compute the NPV for each project.