Healthcare Innovations LLC is considering two healthcare projects. The company's required rate of return is 11%. Use appropriate factors from the tables provided.

• Project Health1: Initial Investment: $400,000; Year 1: $140,000; Year 2: $160,000; Year 3: $180,000; Year 4: $80,000
• Project Health2: Initial Investment: $450,000; Year 1: $160,000; Year 2: $180,000; Year 3: $200,000; Year 4: $100,000
• a. Calculate the payback period for each project. Based on the payback period, which project is preferred?
• b. Calculate the net present value for each project. Based on the net present value, which project is preferred?