Mrs Aisha is a successful business woman and she invests in the projects that have early paybacks and generate high NPV. Her manager has recently proposed her two projects for the investment. The details of the both the projects are given below.

(discount rate = 10%)

years	Cash flow - 1	Cash flow 2
0	(15000)	(16000)
1	5000	2000
2	4500	3400
3	6000	8000
4	2000	7000

Calculate

1. Payback for the first project
2. Payback for the second project
3. NPV for the first project
4. NPV for the second project
5. Which project he must choose on the basis of payback years
6. Which project he must choose on the basis of NPV