PQR Enterprises is considering two potential projects, Project K and Project L. The initial investment for both projects is $275,000, and the firm's discount rate is 10%. The following table shows the expected net cash flows:

Expected Net Cash Flows (in $):

Year	Project K	Project L
0	(275,000)	(275,000)
1	90,000	85,000
2	95,000	90,000
3	100,000	95,000
4	105,000	100,000

Requirements:

1. Determine the payback period for each project.
2. Calculate the NPV for both projects.
3. Compute the IRR for each project.
4. Compare the profitability index for both projects.
5. Recommend which project to pursue based on the financial analysis.