Kappa Corp. has two investment choices. Project O requires an initial expenditure of $50,000 and has the following cash flows:

• Year 1: $15,000
• Year 2: $18,000
• Year 3: $20,000

Project P needs an initial investment of $70,000 with the following projected cash flows:

• Year 1: $20,000
• Year 2: $24,000
• Year 3: $28,000

Requirements:

1. Compute the NPV for each project using a 10% discount rate.
2. Calculate the IRR for each project.
3. Determine the Profitability Index (PI) for each project.
4. Assess which project Kappa Corp. should choose based on the financial analysis.