You have the following projects and their respective cash flows:

Year	Project M	Project N	Project O	Project P
0	-20,000	-25,000	-30,000	-35,000
1	4,000	5,000	6,000	7,000
2	5,000	6,000	7,500	8,000
3	6,000	7,500	9,000	10,000
4	8,000	9,000	10,000	12,000

Required:

1. Calculate the payback period for each project.
2. If the acceptable payback period is 3 years, which project would you recommend?
3. Compute the discounted payback period with a cost of capital of 10%.
4. Find the NPV for each project using a 10% discount rate. Which project has the highest NPV?
5. Which project should be selected based on the NPV criterion?