Please correct answer and don't used hand raiting 18Shepherd's Bush Company is considering two investments, both of which cost $44,000. The cash flows are as follows: Use AppengB and Appendix D.YearProject FProject G1$22,000$21,000217,600315,00017,00013,000a. Calculate the payback period for project F and project G.Note: Round the final answers to 2 decimal places.Project FPayback periodyearsyearsProject Gb-1. Calculate the NPV for project F and project G. Assume a cost of capital of 8 percent.Note: Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole dollar.Net present valueProject FProject G$$b-2. Which of the two projects should be chosen based on the NPV method?O Project FO Project G.O Bothc. Should a firm normally have more confidence in answer derived based on NPV method or Payback method?

Step A: Calculate Payback PeriodThe payback period is the time it takes for the cumulative cash…

Answered: 18 Shepherd's Bush Company is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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