Long-term investment decision, payback method.

Homework: Homework 4 Save Score: 0 of 1 pt 7 of 10 (2 complete) HW Score: 16.93%, 1.69 of 10 p P10-4 (similar to) Long-term investment decision, payback method Personal Finance Problem Bal Williams has the opportunity to invest in project A that costs 58,700 today and promises to pay $2,100, $2,500, $2,500, $2,000 and $1,700 over the next 5 years. Or, Bal can invest $8 700 in project that promises to pay $1,500, 51,500, 51,500, $3,400 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 project A. it will take years. (Round to two decimal places.)