OPQ Inc. is evaluating two investment projects. Both require an initial outlay of USD 100,000. The expected cash inflows are:

Year	Project A (USD)	Project B (USD)
1	25,000	30,000
2	35,000	25,000
3	45,000	20,000
4	55,000	15,000

Requirements:

1. Calculate the payback period for both projects.
2. Determine the NPV at a discount rate of 8%.
3. Calculate the IRR for both projects.
4. Evaluate the PI.
5. Recommend which project should be selected and explain why.