ABC Manufacturing is evaluating two potential expansion projects that will both last 4 years. This significant investment will require both equipment purchases and additional working capital for inventory and receivables. Project A Project B Initial Investment $500,000 $500,000 Working Capital Required $75,000 $75,000 Equipment Maintenance (Year 2)$50,000 $@ Yr 1 Net Cash Inflow $50,000 $300,000 Yr 2 Net Cash Inflow $20,000 $250,000 Yr 3 Net Cash Inflow $10,000 $50,000 Yr 4 Net Cash Inflow $654,850 $25,000 Salvage Value $40,000 $45,000 The company requires all investments to have a minimum return of at least 4%. The working capital will be released at the end of both projects Note: When calculating payback periods, consider only the initial investments and annual cash inflows. Do not include maintenance, salvage values or working capital in your payback calculations. REQUIRED: A) Calculate the payback period for both projects. Show all calculations. B) Which project would you recommend using the payback method? C) Did the payback method yield a different project ranking from your NPV calculation? If so, what 4 differences in the two methods caused the answers to be different