JKL Holdings Capital Budgeting

• JKL Holdings is evaluating two projects with the following cash flows:
• Year 0: Project K: -350,000, Project L: -350,000
• Year 1: Project K: 100,000, Project L: 50,000
• Year 2: Project K: 90,000, Project L: 70,000
• Year 3: Project K: 80,000, Project L: 100,000
• Year 4: Project K: 70,000, Project L: 130,000
• Cost of capital: 10%
• Requirements:
  1. Calculate the NPV for both projects.
  2. Calculate the IRR for both projects.
  3. Determine the payback period for each project.
  4. Evaluate which project should be selected based on NPV, IRR, and payback period.