Question: GHI Enterprises is considering the following two projects. The companys cost of capital is 8%. Year Project E1 Project F1 0 -$250,000 -$300,000 1 $90,000

GHI Enterprises is considering the following two projects. The company’s cost of capital is 8%.

Year

Project E1

Project F1

0

-$250,000

-$300,000

1

$90,000

$100,000

2

$100,000

$110,000

3

$110,000

$120,000

4

$120,000

$130,000

a. Calculate the payback period for each project. b. Compute the NPV and indicate which project should be accepted

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