8A A company is considering two projects. Project A Project B Initial investment $150,000 $150,000 Cash inflow Year 1 $50,000 $40,000 Cash inflow Year 2 $50,000 $40,000 Cash inflow Year 3 $50,000 $40,000 Cash inflow Year 4 $50,000 $60,000 Cash inflow Year 5 $50,000 $80,000 What is the payback period for Project A? a 2 year b 2.5 years c 3 years d 3.5 years e 5 years Question 8B What is the payback period for Project B? a 2 years b 2.5 years c 3 years d 3.5 years e 5 years