Here are the estimated cash flows for two projects:

Year	0	1	2	3	4	5
Project Gobi	-1000	200	240	560	400	600
Project Qattara	-1100	200	200	680	20	1200

The appropriate discount rate for both projects is 6% per year.

a. For each project, calculate the payback period, the discounted payback period, the internal rate of return, and the profitability index.

b. Which project(s) should you choose?

c. If Gobi and Qattara are mutually exclusive, which project should you choose?

Hint: You will want to use a computer or a financial calculator to calculate the IRRs.