Integrative Case 6

Evaluate the following projects, Project Q and Project R, with the expected cash flows below.

Expected Cash Flows:

Year	Project Q	Project R
0	($500)	($600)
1	$100	$150
2	$120	$180
3	$140	$210
4	$160	$240

Requirements:

1. Calculate the traditional Payback Period for both projects.
2. Determine the Net Present Value (NPV) using a 12% discount rate.
3. Compute the Internal Rate of Return (IRR) for each project.
4. Compare the financial metrics to decide which project is better.
5. Make a recommendation on which project to proceed with.