Gamma Ltd is considering two different projects, R and S. Both projects require an initial investment of $75,000 and span 4 years. The company’s cost of capital is 15%. The cash flows are projected as follows:

Year	Project R	Project S
1	$20,000	$25,000
2	$20,000	$20,000
3	$20,000	$15,000
4	$20,000	$30,000

Requirements:

1. Compute the NPV for each project.
2. Determine the IRR for each project.
3. Calculate the Discounted Payback Period for each project.
4. Evaluate the Profitability Index (PI) for each project.
5. Recommend which project to undertake.