YZA Corporation is evaluating two projects. The details are given below:

	Project K	Project L
Cost of Capital	10%	9%
Initial Investment	$140,000	$160,000
Cash Inflow Year 1	$55,000	$65,000
Cash Inflow Year 2	$65,000	$75,000
Cash Inflow Year 3	$75,000	$85,000

Requirements:

1. Calculate the payback period for each project.
2. Determine the NPV of each project.
3. Compute the IRR for each project.
4. Calculate the PI for each project.
5. Advise which project should be selected and justify your recommendation.