Marian Ltd is considering two mutually - exclusive projects with the following details:

Project A

Initial investment Le 450,000

Scrape value in year 5 Le 20,000

Year 1 2 3 4 5

( Le000) ( Le000 ) (Le000) (Le000) ( Le000)

Annual Cash flows 200 150 100 100 100

Project B:

Initial investment Le 100,000

Scrape value in year 5 Le10,000

Year 1 2 3 4 5

( Le000 ) ( Le000 ) ( Le000) ( Le000) ( Le000 )

Annual Cash flows 50 40 30 20 20

Assuming that the initial investment is at the start of the project and the annual cash flows accrue evenly over the year. Calculate the discounted payback for both projects if the relevant cost of capital is 10%.