MNO Industries is considering two potential investments, Project 1 and Project 2.

Project 1:

Year	Cash Flow ($)
Year 0	-80,000
Year 1	25,000
Year 2	30,000
Year 3	25,000
Year 4	30,000

Project 2:

Year	Cash Flow ($)
Year 0	-90,000
Year 1	30,000
Year 2	30,000
Year 3	20,000
Year 4	20,000

The discount rate for Project 1 is 6%, and for Project 2 is 7%.

Requirements: a) Calculate the payback period for each project. b) Identify which project should be chosen if the company requires a payback period of 4 years. c) Calculate the profitability index for each project. d) Determine which project should be accepted based on the profitability index rule. e) Calculate the NPV for each project and recommend which project should be accepted based on NPV.