Cash Flows for Mutually Exclusive Projects (in $)

Year	Project G	Project H
0	-5,000	-6,000
1	1,000	1,200
2	2,000	2,500
3	3,000	4,000
4	4,000	5,500

Requirements:

1. Calculate the payback period for each project.
2. Which project will you select if the standard payback period is 2 years?
3. Compute the discounted payback period for each project using an 8% discount rate.
4. Compute the IRR for each project.
5. Which project is preferable based on IRR?