Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Inatech uses a required rate of return of $10\%$ and an inflation rate of $4\%.$ Compute the payback in years and the net present value for both projects and offer advice as to the best course of action.

Year A B

$0-$$$250,000-$$$400,000$

$1$ $$75,000$ $$125,000$

$2$ $$155,000$ $$230,000$

$3$ $$200,000$ $$288,000$

$4$ $$175,000$ $$265,000$

$5$ $$160,000$ $$225,000$