VWX Ltd. is considering two mutually exclusive projects with the following cash flows:

	Project I	Project J
Cost of Capital	7%	10%
Initial Investment	$150,000	$180,000
Cash Inflow Year 1	$65,000	$75,000
Cash Inflow Year 2	$75,000	$85,000
Cash Inflow Year 3	$85,000	$95,000

Requirements:

1. Calculate the payback period for each project.
2. Determine the NPV of each project.
3. Compute the IRR for each project.
4. Calculate the PI for each project.

Recommend which project to proceed with and justify your decision.