Question: Given below are cash flows of two mutually exclusive projects, Project Yellow and Project Green. Both these projects have an initial investment of $12,000. (a)

Given below are cash flows of two mutually exclusive projects, Project Yellow and Project Green. Both these projects have an initial investment of $12,000. (a) Find the payback period for both Projects and determine which is better. (2.5 marks) (b) State any one drawback of using the payback period. (0.5 mark) Show all steps in the calculations clearly. Cash flows Project Yellow Project Green Year 1 $7,200 $5,500 Year 2 6,100 $6,500 Year 3 5,400 $7,500

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