Integrative Case 9

Assess two investment opportunities, Project G and Project H, with the following cash flows.

Projected Cash Flows:

Year	Project G	Project H
0	($320)	($420)
1	$70	$90
2	$80	$100
3	$90	$120
4	$100	$150

Requirements:

1. Calculate the traditional Payback Period for both projects.
2. Determine the Net Present Value (NPV) at a discount rate of 9%.
3. Compute the Internal Rate of Return (IRR) for each project.
4. Compare the financial metrics to decide which project is better.
5. Make a recommendation on which project to proceed with.