Problem:
The required return is 10% on an investment
Year Project F Project G
0 -175,000 -275,000
1 85,000 55,000
2 65,000 70,000
3 80,000 110,000
4 70,000 190,000
5 55,000 135,000
a) Calculate the payback period for both projects
b) Calculate the NPV for both projects
c) Which project should the company accept.