Review the following cash flows for Projects Q and R:

Year	Project Q	Project R
0	-$30,000	-$80,000
1	$8,000	$15,000
2	$9,000	$17,000
3	$10,000	$19,000
4	$11,000	$21,000
5	$12,000	$23,000
6	$13,000	$25,000

a. Calculate the NPV, IRR, and traditional payback period for each project, assuming a required rate of return of 8%.

b. Determine the profitability index for each project.

c. Calculate the modified internal rate of return (MIRR) for each project assuming reinvestment at the required rate of return.

d. Explain the concept of incremental cash flows and its importance in project evaluation.

e. Discuss the limitations of using the IRR method in capital budgeting.