Projects E and F are being considered. The cash flows are given below:

	Project E	Project F
Cost of Capital	10%	9%
Initial Investment	$150,000	$140,000
Cash Inflow Year 1	$50,000	$60,000
Cash Inflow Year 2	$60,000	$70,000
Cash Inflow Year 3	$80,000	$50,000

a. Calculate the payback period for each project.
 b. Calculate the NPV of each project using the respective cost of capital.
 c. Determine the IRR for both projects.
 d. Calculate the profitability index for both projects.
 e. Advise which project should be selected and why.