Zeta Inc. is deciding between two capital investments, Project Q and Project R.

Project Cash Flows and IRR:

Project	C0 ($ thousands)	C1 ($ thousands)	C2 ($ thousands)	IRR (%)
Q	-55	25	30	19.25
R	-65	35	25	17.75

The company's discount rate is 11%.

Requirements:

1. Discuss why IRR might not be the best criterion.
2. Calculate the NPV for each project.
3. Determine which project should be chosen based on NPV.
4. Evaluate the effect of potential changes in the discount rate on the decision.