Two projects, Project Q and Project R, are being analyzed. Both require an initial outlay of $28,000.

Year	Project Q	Project R
1	$8,000	$7,000
2	$7,000	$8,000
3	$6,000	$9,000
4	$5,000	$6,000
5	$4,000	$3,000

Requirements:

• Calculate the NPV for each project using a discount rate of 13%.
• Determine the profitability index (PI) for each project.
• Calculate the IRR for each project.
• State which project should be accepted based on the IRR.