MNO Ltd. is evaluating two projects, Projects E and F, both requiring an initial outlay of $250,000. The estimated cash flows are:

Year	Project E	Project F
0	($250,000)	($250,000)
1	80,000	100,000
2	90,000	80,000
3	100,000	60,000
4	110,000	50,000
5	120,000	40,000

The discount rate is 9%.

Requirements:

1. Calculate the payback period for each project.
2. Determine the NPV for each project.
3. Calculate the IRR for each project.
4. Advise which project should be selected if only one can be undertaken.
5. Analyze the implications of project risk on the decision.