Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc, is considering two mutually exclusive projects. Each requires an initial investment of $100,000. John Shell, president of the company, has set a maximum payback period of 4 years. The cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project. b. Which project is acceptable based on payback period? a. The payback period of project A is years. (Round to two decimal places.) The payback period of project B is years. (Round to two decimal places.) b. Which project is acceptable based on payback period? (Select the best answer below.) Project B would be preferred over project A because the larger cash flows are in the early years of the project. Project A would be preferred over project B because the larger cash flows are in the later years of the project. \begin{tabular}{ccc} \hline & \multicolumn{2}{c}{ Cash inflows (CFt)} \\ \cline { 2 - 3 } Year & Project A & Project B \\ \hline 1 & $10,000 & $40,000 \\ 2 & $20,000 & $30,000 \\ 3 & $30,000 & $20,000 \\ 4 & $40,000 & $10,000 \\ 5 & $20,000 & $20,000 \\ \hline \end{tabular}