Examine the cash flows for Project H and Project I assuming a WACC of 10%.

Cash Flow	Project H	Project I
Year 0	-$50,000	-$85,000
Year 1	$20,000	$30,000
Year 2	$25,000	$35,000
Year 3	$22,000	$28,000
Year 4		$20,000
Year 5		$15,000

Requirements:

1. Compute the NPV for each project.
2. Determine the IRR for each project.
3. Calculate the profitability index for both projects.
4. Recommend which project to undertake based on NPV and IRR.