Phoenix Corp. is evaluating two projects, Project K and Project L:

Project K:

Year	Cash Flow ($)
0	-130,000
1	20,000
2	40,000
3	60,000
4	70,000

Project L:

Year	Cash Flow ($)
0	-150,000
1	30,000
2	50,000
3	70,000
4	80,000

The discount rates are 8% for Project K and 10% for Project L.

a) Determine the payback period for each project.

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

c) Calculate the NPV for each project.