Consider the following two mutually exclusive projects:

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$ $380,000$$ $68,000$

$166,00036,000$

$271,00028,000$

$371,00025,500$

$4446,00020,600$

Whichever project you choose, if any, you require a $15\%$ return on your investment.

a$-1.$ What is the payback period for each project? $($Round the final answers to $2$ decimal places.$)$

Payback Period

Project A

years

Project B

years

a$-2.$ If you apply the payback criterion, which investment will you choose?

multiple choice $1$

Project A

Project B

b$-1.$ What is the discounted payback period for each project? $($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

Discounted Payback Period

Project A

years

Project B

years