Given the following projects with the respective cash flows:

Year	Project AO	Project AP	Project AQ	Project AR
0	-10,000	-12,000	-14,000	-16,000
1	2,000	2,500	3,000	3,500
2	2,500	3,000	3,500	4,000
3	3,000	3,500	4,000	4,500
4	4,000	4,500	5,000	5,500

Required:

1. Determine the payback period for each project.
2. If the acceptable payback period is 3 years, which project should be chosen?
3. Compute the discounted payback period at a discount rate of 12%.
4. Calculate the NPV for each project using a 12% discount rate. Which project has the highest NPV?
5. Based on the NPV criterion, which project should be recommended?