OPQ Corporation is considering two mutually exclusive projects, P1 and P2. Each requires an initial investment of $30,000 and spans over 5 years. The firm’s cost of capital is 9%. The net cash flows before tax for the projects are:

Year	Project P1	Project P2
1	$10,000	$9,000
2	$10,000	$11,000
3	$10,000	$10,000
4	$10,000	$12,000
5	$10,000	$8,000

Requirements:

1. Calculate the NPV for each project.
2. Compute the IRR for each project.
3. Determine the Payback Period for each project.
4. Calculate the Accounting Rate of Return (ARR) for each project.
5. Make a decision on which project to select based on the analysis.