An organization considers two projects, K and L, requiring an initial outlay of $60,000 each. The cash inflows are:

Project K:

• Year 1: $25,000
• Year 2: $20,000
• Year 3: $15,000
• Year 4: $10,000

Project L:

• Year 1: $20,000
• Year 2: $18,000
• Year 3: $16,000
• Year 4: $15,000

Requirements: a. Calculate the NPV for both projects using a 10% discount rate. b. Find the IRR for both projects. c. Compute the discounted payback period for both projects. d. Decide which project should be accepted if only one can be chosen.