JKL Inc. is considering two capital projects. The company’s cost of capital is 7%, and its tax rate is 29%. The project details are as follows:

Project Q:

• Initial Cost: $500,000
• Life: 4 years
• Annual Revenue: $150,000
• Depreciation: Straight-line

Project R:

• Initial Cost: $800,000
• Life: 5 years
• Annual Revenue: $200,000
• Depreciation: Straight-line

Compute:

1. Net Present Value (NPV).
2. Internal Rate of Return (IRR).
3. Payback period.
4. Profitability Index.