Your company can invest in 1 of the following 2 projects:

Whichever project is chosen, if any, your company requires a 7% return on your investment.

8a. What is the payback period for each project?

8b. If you base your decision on which project has the shortest payback, which will you choose?

8C. What is the internal rate of return for each project?

8D. If you base your decision on the IRR, which will you choose?