An organization is evaluating two projects, E and F, which require an initial investment of $180,000. The anticipated cash flows are as follows:

Year	Project E	Project F
1	$60,000	$25,000
2	$60,000	$50,000
3	$60,000	$75,000
4	$60,000	$90,000
5	$60,000	$60,000

The firm's cost of capital is 8%.

Required: i. Calculate the following for each project:

• Simple payback period
• Discounted payback period
• Net present value
• Internal rate of return
• Profitability index ii. Advise the company on the most suitable project.