You are assessing two investment projects for Zeta Inc., Projects G and H. Each project has an initial cost of $110,000, with a cost of capital of 12 percent. The expected net cash flows are:

Expected Net Cash Flows

Year	Project G	Project H
0	($110,000)	($110,000)
1	55,000	50,000
2	45,000	35,000
3	35,000	25,000
4	25,000	15,000

i) Calculate the payback period for each project.
 ii) Determine the NPV and IRR for both projects.
 iii) Advise which project should be undertaken if they are independent.
 iv) Identify the better project if they are mutually exclusive.
 v) Discuss the effect of changing the cost of capital to 8 percent on your recommendations.