Four projects have the following details:ProjectsInitial Investment (?)Year 1 (?)Year 2 (?)Year 3 (?)Year 4...

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Accounting

Four projects have the following details:

Projects

Initial Investment (?)

Year 1 (?)

Year 2 (?)

Year 3 (?)

Year 4 (?)

E

6,000

1,000

2,000

2,500

3,000

F

8,000

2,000

2,500

3,000

4,000

G

10,000

3,000

3,500

4,000

5,000

H

12,000

3,500

4,000

5,000

6,000

Required:

  1. Determine the payback period for each project.
  2. Identify which projects meet a standard payback period of 3 years.
  3. Calculate the NPV at a 10% discount rate.
  4. Determine the IRR for each project.
Make a recommendation based on both NPV and IRR.

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