For Theta Industries, you need to analyze two proposed projects, Projects R and S. Each project demands an initial investment of $130,000, with a discount rate of 14 percent. The projected cash flows are as follows:

Expected Net Cash Flows

Year	Project R	Project S
0	($130,000)	($130,000)
1	60,000	55,000
2	50,000	45,000
3	40,000	35,000
4	20,000	25,000

i) Determine the payback period for each project.
 ii) Calculate the NPV and IRR for each project.
 iii) Recommend which project to undertake if they are independent.
 iv) Determine which project to accept if they are mutually exclusive.
 v) Analyze the sensitivity of the NPV to changes in the discount rate