A.

Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).)

Project B
Time:	0	1	2	3	4	5
Cash flow:	$11,600	$3,410	$4,300	$1,640	$0	$1,120

B.

Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)

Project A
Time:	0	1	2	3	4	5
Cash flow:	$2,500	$950	$930	$820	$600	$400