OPQ Corp Project Evaluation

• OPQ Corp is considering two projects with the following details:
• Year 0: Project C: -500,000, Project D: -500,000
• Year 1: Project C: 200,000, Project D: 100,000
• Year 2: Project C: 150,000, Project D: 150,000
• Year 3: Project C: 100,000, Project D: 200,000
• Year 4: Project C: 50,000, Project D: 250,000
• Year 5: Project C: 25,000, Project D: 300,000
• Cost of capital: 9%
• Requirements:
  1. Calculate the NPV for both projects.
  2. Calculate the IRR for both projects.
  3. Determine the profitability index for each project.

Decide which project to undertake based on NPV, IRR, and profitability index