The management of LMN Inc. is analyzing two potential investments. Each requires an initial investment of $300,000 and has the following projected cash inflows:

Year	Project 1	Project 2
0	($300,000)	($300,000)
1	100,000	120,000
2	90,000	130,000
3	80,000	140,000
4	70,000	150,000
5	60,000	160,000

Requirements:

1. Determine the payback period for both projects.
2. Calculate the NPV at a discount rate of 8%.
3. Compute the IRR for both projects.
4. Recommend which project to undertake based on the NPV criterion.

Explain any non-financial factors that should be considered before making a decision.