LMN Inc. is considering two projects, K and L, with the following data:

Year	Project K Cash Flow ($)	Project L Cash Flow ($)
0	-100,000	-120,000
1	30,000	35,000
2	40,000	45,000
3	50,000	55,000
4	60,000	65,000
IRR	18%	20%

Cost of capital is 12%.

a) Compute the discounted payback period for each project. b) Calculate the NPV of each project. c) Determine which project should be accepted based on NPV. d) Discuss the advantages and limitations of the discounted payback period.