Multiple Choice Question

A company is considering two projects. Project $1$ has an initial investment of $$60,000$ and expected cash inflows of $$20,000$ each year for $5$ years. Project $2$ has an initial investment of $$80,000$ and expected cash inflows of $$20,000$ each year for $10$ years. Using the payback period as the evaluation method, which investment should be chosen by management?

Multiple choice question.

Project $1$ with total cash inflows of $$100,000$

Project $2$ with total cash inflows of $$200,000$

Project $1$ with payback period of $3$ years

Project $2$ with payback period of $4$ years