Paderborn Industries is considering two investment projects. The estimated cash flow in SARs for each project is as follows:
Year
Plant Expansion 
(7,500,000)
Retail Store Expansion
(7,500,000)
1
2,200,000
3,050,000
2
2,200,000
2,700,000
3
2,200,000
2,050,000
4
2,200,000
1,650,000
5
2,200,000
920,000
Total
11,000,000
10,370,000
The company has decided that the appropriate discount rate is 10%.
Required:

Calculate the payback for each project (to 3 decimal points).
Calculate the Net Present Value (NPV) for each project.
Calculate the Present Value Index (PI) for each project (round to 3 decimal places).
Calculate the Internal Rate of Return (IRR) for each project (Round to 2 decimal places).
Advise management on which, if either, project to pursue and why.