Omega Enterprises has two potential projects, Project I and Project J:

Project I:

Year	Cash Flow ($)
0	-180,000
1	25,000
2	50,000
3	75,000
4	100,000

Project J:

Year	Cash Flow ($)
0	-190,000
1	35,000
2	60,000
3	85,000
4	95,000

The discount rates are 7% for Project I and 9% for Project J.

a) Calculate the payback period for each project.

b) Calculate the IRR for each project.
 ii. Which project should be accepted based on the IRR rule?

c) Calculate the NPV for each project.