LMN Ltd. is evaluating two projects, Q and R. Project Q requires an initial investment of $70,000 and is expected to generate cash flows of $25,000 annually for 5 years. Project R requires an initial investment of $65,000 and is expected to generate cash flows of $22,000 annually for 5 years. The company's discount rate is 11%.

(a) Calculate the NPV for each project.

(b) State your accept/reject decision for each project.

(c) Determine the IRR for both projects.

(d) Calculate the payback period for both projects.

(e) Which project would you recommend and why?