Two investments, K and L, require initial investments of $60,000 and $65,000, respectively. The following are the projected cash flows:

Year	Investment K	Investment L
1	$14,000	$18,000
2	$16,000	$14,000
3	$20,000	$12,000
4	$22,000	$10,000

a) Calculate the NPV for each investment using a discount rate of 5%.
 b) Determine the IRR for each investment.
 c) Decide which investment to accept if they are mutually exclusive.
 d) Calculate the profitability index for each investment.
 e) Analyze the effect of a 3% increase in the discount rate on the NPV of each investment.