Lipsion Ltd company is thinking about investing in one of two potential new products for sale. The projections are as follows:

year	revenue/cost (product s)	Revenue/cost (product V)
0	(150,000) outlay	(150,000) outlay
1	14,000	15,000
2	24,000	25,333
3	44,000	52,000
4	84,000	63,333

a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.

b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.

c) Which product should be chosen and why?

d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.

e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.