House Construction Inc. wants to purchase equipment in 2021. The company has collected the information below for three projects it is considering.
	Project 1	Project 2	Project 3
Net initial investment	$7,500,000	$5,000,000	$9,000,000
Projected cash inflows:
Year 1	$2,400,000	$1,200,000	$4,800,000
Year 2	$2,400,000	$2,500,000	$4,800,000
Year 3	$2,400,000	$ 1,700,000	$ 900,000
Year 4	$2,200,000	$ 1,000,000	$ 300,000
Year 5	$2,200,000
Required rate of return	8%	8%	8%
Required: (a) Calculate the Net Present Value (NPV) for each project and indicate which project the company should adopt (b) Calculate the payback period for each project and indicate which project the company should adopt if it requires a return of investment three (3) years.