A company has $280,000 to invest in either Project G or Project H. The cash flows are as follows:

• Year 1:
  • Project G: $80,000
  • Project H: $25,000
• Year 2:
  • Project G: $80,000
  • Project H: $50,000
• Year 3:
  • Project G: $80,000
  • Project H: $100,000
• Year 4:
  • Project G: $80,000
  • Project H: $150,000
• Year 5:
  • Project G: $80,000
  • Project H: $70,000

The discount rate is 8%.

Required:

1. For each project, calculate the:
   • Simple payback period
   • Discounted payback period
   • Net present value
2. Prepare a projected balance sheet for the selected project at the end of Year 5.

Recommend which project the company should select based on the results of your calculations.