Problem 5-1 Calculating Payback Period and NPV

Fuji Software, Inc., has the following mutually exclusive projects.

Year		Project A		Project B
0	$	20,000	$	23,000
1		12,000		13,000
2		8,500		9,500
3		2,900		8,500

a-1.	Calculate the payback period for each project. (Round your answers to 3 decimal places. (e.g., 32.161))

	Payback period
Project A	years
Project B	years

a-2.	Which, if either, of these projects should be chosen?
	Project A Project B Both projects Neither project

b-1.	What is the NPV for each project if the appropriate discount rate is 16 percent? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))

	NPV
Project A	$
Project B	$

b-2.	Which, if either, of these projects should be chosen if the appropriate discount rate is 16 percent?
	Project A Project B Both projects Neither project

I would like you to walk me through the steps if possible.