Question: 10-7 . The Rabbit Co. is considering two projects: A and B. Both projects are subject to a 5-year loan from the bank, and a

 10-7 . The Rabbit Co. is considering two projects: A and

10-7 . The Rabbit Co. is considering two projects: A and B. Both projects are subject to a 5-year loan from the bank, and a 15% annual interest rate. . Initial outlay, Year Inflow, Year 1 Inflow, Year 2 Inflow, Year 3 Inflow, Year 4 Inflow, Year 5 Project A $50,000 $20,000 $20,000 $10,000 $10,000 $30,000 $30,000 Project B -$25,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 Inflow, Year 6 a. Calculate the Payback period for each project. . Project A

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