Consider two mutually exclusive projects with the following cash flows:

Project G

• Initial Investment: $5,000,000
• Year 1: $1,500,000
• Year 2: $2,000,000
• Year 3: $2,500,000

Project H

• Initial Investment: $4,500,000
• Year 1: $1,200,000
• Year 2: $1,500,000
• Year 3: $2,000,000

a. Calculate the NPV of each project assuming a 7% cost of capital. b. Determine the IRR for each project. c. Assess the payback period. d. Recommend which project to proceed with and justify your decision.