A company is considering two mutually exclusive projects requiring an initial cash outlay of $100 each and with a useful life of 5 years. The company required rate of return is 10% and the appropriate corporate tax rate is 40%. The projects will be depreciated on a straight line basis. The before depreciation and taxes cash flows expected to b generated by the projects are as follows.

Year	1	2	3	4	5
Project A ($)	4,000	4,000	10,000	2,000	1,000
Project B ($)	6,000	3,000	2,000	5,000	5,000

Required a) Determine the cashflow associated with the projects?

b) Which project should be accepted by using the appraisal method below;

1. Payback period
2. Net present value