Long$-$term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $$9,500$ today and promises to pay $$2,300,$

$$2,600,$$$2,600,$$$2,100$ and $$1,800$ over the next $5$ years. Or$,$ Bill can invest $$9,500$ in project $B$ that promises to pay $$1,600,$$$1,600,$$$1,600,$$$3,600$ and $$4,000$ over the next $5$ years. $($Hint: For

mixed stream cash inflows, calculate cumulative cash inflows on a year$-$to$-$year basis until the initial investment is recovered.$)$

a$.$ How long will it take for Bill to recoup his initial investment in project $A?$

b$.$ How long will it take for Bill to recoup his initial investment in project $B?$

c$.$ Using the payback period, which project should Bill choose?

d$.$ Do you see any problems with his choice?

a$.$ For Bill to recoup his initial investment in projectA, it will take

years. $($Round to two decimal places.$)$

Long$-$term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $$9,500$ today and promises to pay $$2,300,$

$$2,600,$$$2,600,$$$2,100$ and $$1,800$ over the next $5$ years. Or$,$ Bill can invest $$9,500$ in project $B$ that promises to pay $$1,600,$$$1,600,$$$1,600,$$$3,600$ and $$4,000$ over the next $5$ years. $($Hint: For

mixed stream cash inflows, calculate cumulative cash inflows on a year$-$to$-$year basis until the initial investment is recovered.$)$

a$.$ How long will it take for Bill to recoup his initial investment in project $A?$

b$.$ How long will it take for Bill to recoup his initial investment in project $B?$

c$.$ Using the payback period, which project should Bill choose?

d$.$ Do you see any problems with his choice?

a$.$ For Bill to recoup his initial investment in projectA, it will take

years. $($Round to two decimal places.$)$