PQR Corporation is considering two projects with the following information:

• Project G:

• Initial Investment: $300,000
• Cost of Capital: 12%
• Cash Inflows:
  • Year 1: $100,000
  • Year 2: $110,000
  • Year 3: $120,000
  • Year 4: $130,000

• Project H:

• Initial Investment: $320,000
• Cost of Capital: 13%
• Cash Inflows:
  • Year 1: $110,000
  • Year 2: $120,000
  • Year 3: $130,000
  • Year 4: $140,000

Requirements:

1. Compute the payback period for each project.
2. Calculate the NPV for each project.
3. Determine the PI for each project.
4. Make a recommendation on which project should be chosen and explain your reasoning.