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Please see the exercise below about Lincoln Company, that is considering two projects in Virginia and New York. You are asked to calculate for each the NPV and payback,and based on your responses, pick which project (and only one project) should be approved and why.

Lincoln Company Investment Analysis Project Virginia Project New YorkInitial Investment$500,000 $800,000 Annual Net Cash Inflow$150,000 $230,000 Salvage Value$0 $0 Estimated Useful Life in Years44Company interest rate5.0%5.0%Payback in years with 2 decimal placesNPVWhich project should Lincoln Company accept and why?

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