VWX Corp. is considering two capital investments, Project T and Project S. Each project requires an initial investment of $500,000, and the company's required rate of return is 15%. The expected net cash flows are:

Expected Net Cash Flows (in $):

Year	Project T	Project S
0	(500,000)	(500,000)
1	150,000	140,000
2	160,000	150,000
3	170,000	160,000
4	180,000	170,000
5	190,000	180,000

Requirements:

1. Compute the payback period for each project.
2. Calculate the NPV for both projects.
3. Determine the IRR for each project.
4. Compare the profitability index of each project.
5. Decide which project is more favorable and justify your decision.