JKL Industries is evaluating two mutually exclusive projects with the following cash flows:

Year	Project 1 (USD)	Project 2 (USD)
0	(150,000)	(150,000)
1	40,000	50,000
2	50,000	50,000
3	60,000	40,000
4	70,000	30,000
5	80,000	20,000

Requirements:

1. Calculate the payback period for both projects.
2. Determine the NPV if the cost of capital is 9%.
3. Calculate the IRR for both projects.
4. Assess the profitability index (PI).
5. Advise which project should be undertaken and why.