Payback may be computed using average cash inflows $($PB$)$ or$,$ more precisely, using year$-$by$-$year cash inflows $($PPB$).$ Cash inflows are given as follows for Projects A and B$,$ each requiring an investment of $$150,000.$

$$Project$$A$$Project$$B

$------------------$

Year$1$$$100,000$$$110,000$

Year$2110,000110,000$

Year$3132,000110,000$

$----------------$

Total$$$$342,000$$$333,000$

$================$

Average$$$$114,000$$$110,000$

$================$

For these projects:

Project A is best with PB and Project B is best with PPB$.$

Project B is best with PB and Project A is best with PPB$.$

Project A is best for both PB and PPB$.$

Project B is best for both PB and PPB$.$