10. Skyline Ventures is considering two new projects with the following net cash flows. The company’s required rate of return is 9%. PV of $1 (4%), PVA of $1 (4%), PV of $1 (9%), and PVA of $1 (9%).

Year	Project K	Project L
0	$(550,000)	$(430,000)
1	$140,000	$110,000
2	$150,000	$120,000
3	$160,000	$130,000
4	$180,000	$140,000

a. Compute the payback period for each project. Which project is preferred based on the payback period? b. Compute the net present value for each project. Which project is preferred based on the NPV?