You have two projects, G and H, requiring an initial outlay of $40,000 each The projected cash inflows are Project G Year 1 $14,000 Year 2 $13,000 Year 3 $12,000 Year 4 $11,000 Project H Year 1 $15,000 Year 2 $14,000 Year 3 $10,000 Year 4 $8,000 Requirements a Calculate the NPV for each project using a discount rate of 15 b Calculate the IRR for each project c Calculate the payback period for each project d Identify which project should be selected if the projects are independent

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Question: You have two projects, G and H, requiring an initial outlay of $40,000 each. The projected cash inflows are: Project G: Year 1: $14,000 Year

You have two projects, G and H, requiring an initial outlay of $40,000 each. The projected cash inflows are:

Project G:

Year 1: $14,000
Year 2: $13,000
Year 3: $12,000
Year 4: $11,000

Project H:

Year 1: $15,000
Year 2: $14,000
Year 3: $10,000
Year 4: $8,000

Requirements: a. Calculate the NPV for each project using a discount rate of 15%. b. Calculate the IRR for each project. c. Calculate the payback period for each project. d. Identify which project should be selected if the projects are independent.

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