Investment Analysis (in €):

Projects	Initial Cost	Year 1	Year 2	Year 3	Year 4	Year 5
M	-€20,000	€4,000	€5,000	€6,000	€7,000	€8,000
N	-€25,000	€3,000	€6,000	€7,000	€8,000	€9,000

Required:

1. Calculate the payback period for each project.
2. Determine which project is preferable if the acceptable payback period is 4 years.
3. Compute the NPV at a discount rate of 6%.
4. Calculate the IRR for both projects.
5. Assess the profitability index (PI) for both projects.