What are the NPV, PI and IRR values for Projects G & H? despite their unequal project durations? How can these projects be compared, and which one should be selected, considering no capital constraints?

On January 11, 2023, the finance committee of Mada Plastic Molding Company (MPMC) met to evaluate eight capital-budgeting projects. They had four mutually exclusive profit projects to consider. Projects G and H focused on replacing machinery. Project G suggested purchasing highly efficient equipment with a 5 -year life expectancy, while Project H advocated buying less efficient machinery with a 10-year life expectancy. Both projects had 10-year cash flow projections. Project G involves the purchase and installation of moderately priced, highly efficient equipment with an expected life of 5 years. This project is an equipment replacement project, where MPMC will replace some of its existing machinery with more efficient alternatives. Here are the cash flows associated with Project G: - Year 0: Initial investment of $500,000 - Year 1: Cash inflow of $225,000 - Year 2: Cash inflow of $225,000 - Year 3: Cash inflow of $225,000 - Year 4: Cash inflow of $225,000 - Year 5: Cash inflow of $225,000 In Year 0, MPMC would need to invest an initial amount of $500,000 to purchase and install the new equipment. Over the next five years, the project is expected to generate consistent annual cash inflows of $225,000. Project G aims to improve the efficiency and productivity of MPMC's operations by replacing older machinery with newer, more efficient equipment. The decision regarding this project will depend on whether the expected cost savings and operational improvements justify the initial investment and whether the benefits align with the company's goals and strategy. The decision will involve assessing the impact on production capacity, the longevity of the equipment, and the cost-effectiveness of the investment in the context of MPMC's overall financial and operational objectives. Project H involves the purchase and installation of moderately priced equipment with a longer expected life of 10 years. Similar to Project G, this is also an equipment replacement project, where MPMC is considering the replacement of some of its existing machinery with newer alternatives. Here are the cash flows associated with Project H : - Year Initial investment of $500,000 - Year 1: to Year 10: Cash inflow of $150,000 In Year 0, MPMC would need to invest an initial amount of $500,000 to purchase and install the new equipment, which has a longer expected life of 10 years. Over the next ten years, the project is expected to generate consistent annual cash inflows of $150,000. Project H is designed to improve efficiency and productivity within MPMC by replacing older machinery with newer equipment with an extended lifespan. The decision regarding this project will depend on whether the expected cost savings, operational enhancements, and the longer equipment life justify the initial investment. MPMC will need to assess whether these benefits align with the company's strategic goals and financial objectives. The decision will involve evaluating the trade-off between the initial investment and the expected long-term benefits, as well as considering factors like production capacity, equipment reliability, and the company's overall financial situation and objectives