Evaluate the following two projects, Project G and Project H, given their projected cash flows over a 3-year period. The company’s required rate of return is 9%.

Project G:

• Year 0: $(180)
• Year 1: $60
• Year 2: $80
• Year 3: $100

Project H:

• Year 0: $(160)
• Year 1: $50
• Year 2: $70
• Year 3: $90

a. Explain capital budgeting and its significance. b. Calculate the payback period for Project G and Project H. c. Define and calculate NPV for both projects. d. Define and calculate IRR for both projects. e. Which project should be preferred based on NPV and IRR?