Lonestar International has identified two mutually exclusive projects and the free cash flows associated with each appear below. Assume a 10 percent discount rate.

Table 2: Projected free cash flows for projects C and D.

Year	C	D
0	($50,000)	($50,000)
1	14,500
2	14,500
3	14,500
4	14,500
5	14,500	90,000

For each project, calculate the:

1. Regular Payback Period. (2 points)
2. NPV. (2 points)
3. IRR. (2 points)

Which project should be accepted? Why? (4 points)