1. Two mutually exclusive projects are being considered and one of them must be selected. Project A requires an initial investment of $500,000, annual O&M costs of 200,000, and will have a useful life of 8 years. Project B requires an initial investment of $800,000, annual O&M costs of 150,000, and will have a useful life of 9 years. Both projects are estimated to yield $350,000 per year in revenues. The salvage value of the equipment used in each project at the end of their respective useful lives is $50,000 and $40,000, respectively. a. Compute the payback period for Project A considering a MARR of 15%. b. Compute the payback period for Project B considering a MARR of 15%.

***Minimum acceptable rate of return = MARR

I need steps and cash flows diagrams. Thanks a lot!