Cash Flows for Projects (in $)

Year	Project O	Project P
0	-12,000	-14,000
1	2,000	3,000
2	4,000	5,000
3	5,000	6,000
4	6,000	7,000

Requirements:

1. Determine the payback period for each project.
2. Decide which project to select if the standard payback period is 2 years.
3. Calculate the discounted payback period at a 6% discount rate.
4. Compute the NPV for each project.
5. Recommend the project based on NPV.