Gyro Corporation is considering two investment projects, each of which will cost $1,340,000. The estimated cash flow for each project is as follows.

		Retail
	Plant	Store
Year	Expansion	Expansion
1	450,000	500,000
2	450,000	400,000
3	340,000	350,000
4	280,000	250,000
5	180,000	200,000
Total	1,700,000	1,700,000

The company has decided that a 10% discount rate is appropriate for each project.

Required:

1- Calculate the payback period for each project.

2- Calculate the Net Present Value (NPV) of each project.

3- Advise management on which, if either, project to pursue and why.

Use an Excel spreadsheet for your answers.