Read the following context;

We had been saving every month for the last years an amount that represents a total sum of $70,000, and now we are planning to do some improvements in our business. In order to improve our operations and increase our revenues, we have some projects and investment alternatives that we are considering, having in mind the goal of expanding our business and opening a new store with an expected cost of $140,000.

Question

We also have been offered two alternative projects

Project 1: A project that consists of an initial investment of $60,000 and a set of yearly revenues of $36,000$ for 6 years.

Project 2: A project that consists of an initial investment of $50,000 and a set of yearly revenues of $34,500$ for 6 years.

What is the shortest payback period comparing these projects?

Considering a cost of capital of 3%, whats the NPV of the best option?

Please show your workings for each option.