Problem 9-3 Calculating Payback [LO2]

Siva, Inc., imposes a payback cutoff of three years for its international investment projects.

Year	Cash Flow (A)				Cash Flow (B)
0	$	51,000			$	61,000
1		18,500				10,500
2		19,000				13,500
3		16,500				17,000
4		3,500				221,000

What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.)

	Payback period
Project A	years
Project B	years

Which project should the company accept?

	Project A
	Project B