Long$-$term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $$5,300$ today and promises to pay $$2,300,$$$2,600,$ $$2,600,$$$1,900$ and $$1,900$ over the next $5$ years. Or$,$ Bill can invest $$5,300$ in project B that promises to pay $$1,500,$$$1,500,$$$1,500,$$$3,700$ and $$4,100$ 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?