PQR Ltd. is evaluating two capital projects with the following cash flows:

Year	Project M	Project N
0	-$200,000	-$250,000
1	$80,000	$90,000
2	$90,000	$100,000
3	$100,000	$110,000
4	$110,000	$120,000

Requirements:

1. Calculate the NPV for both projects using a discount rate of 13%.
2. Compute the IRR for each project.
3. Determine the profitability index.
4. Evaluate the payback period and discounted payback period.

Recommend which project PQR Ltd. should undertake if they are mutually exclusive.