Budgeting and Forecasting Problem

Jackson Company is considering two capital investment proposals. Estimates regarding each project are provided below:
 

Project Nuts

Project Bolts

Initial Investment

$175,000

$100,000

Annual Net Income

$30,000

52,000

Annual Cash Inflow

$70,000

$45,000

Salvage Value

$0

$0

Estimated Useful Life

3 years

3 years

 
The company requires a 9% rate of return on all new investments.
 
Part (a) Calculate the payback period for each project.
Part (b) Calculate the net present value for each project.
Part (c) Which project should Jackson Company accept and why?

(Please show work and make sure the answer is 100% correct. Thanks!)

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