Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) O -$237,359 -$15,978 1 29,700 4,857 2 56,000 8,919 3 54,000

Consider the following two mutually exclusive projects: Year Cash Flow (A)

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) O -$237,359 -$15,978 1 29,700 4,857 2 56,000 8,919 3 54,000 13,886 4 414,000 9,034 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B

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