XYZ Ltd. is considering an investment in either Project P or Project Q. The company's cost of capital is 11%, and its tax rate is 32%. The projects have the following details:

	Project P	Project Q
Cost of project	2,000,000	3,000,000
Expected life	6 years	7 years
Annual Cash Flow	450,000	600,000
Depreciation	Straight-line	Straight-line

Requirements:

1. Calculate the payback period.
2. Compute the NPV for both projects.
3. Compute the IRR for both projects.
4. Provide a recommendation on which project to select.