Below are the projected cash flows for four new projects:

Year	Project Q	Project R	Project S	Project T
0	-10,000	-12,000	-14,000	-16,000
1	3,000	3,500	4,000	4,500
2	3,500	4,000	4,500	5,000
3	4,000	4,500	5,000	5,500
4	4,500	5,000	5,500	6,000

Required:

1. Calculate the payback period for each project.
2. Which project would you choose if the maximum payback period is 3 years?
3. Compute the discounted payback period using a discount rate of 8%.
4. Calculate the NPV of each project at an 8% discount rate. Which project has the highest NPV?
5. Based on the NPV criterion, which project would you recommend?