Cash Flow Projects (in £):

Projects	Initial Investment	Year 1	Year 2	Year 3	Year 4	Year 5
A	-£50,000	£15,000	£20,000	£10,000	£5,000	£8,000
B	-£60,000	£10,000	£15,000	£20,000	£25,000	£5,000

Required:

1. Compute the payback period for each project.
2. If the standard payback period is 4 years, which project is preferable?
3. Calculate the NPV of each project assuming a discount rate of 10%.
4. Determine the internal rate of return (IRR) for each project.
5. Assess the profitability index (PI) for both projects.