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Evaluate the following projects G and H with their respective cash flows: Project G: Initial investment: -$90,000 Year 1: $25,000 Year 2: $30,000 Year 3:
Evaluate the following projects G and H with their respective cash flows:
Project G:
- Initial investment: -$90,000
- Year 1: $25,000
- Year 2: $30,000
- Year 3: $35,000
- Year 4: $40,000
Project H:
- Initial investment: -$85,000
- Year 1: $20,000
- Year 2: $25,000
- Year 3: $30,000
- Year 4: $35,000
a. Compute the NPV, IRR, and payback period for both projects, with a discount rate of 6 percent.
b. Decide which project(s) should be chosen if they are independent and which should be chosen if they are mutually exclusive.
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