Question 2:			Comparing Two Projects Using the Payback Method
				Project A		Project B
		Investment		$700,000		$400,000
		Annual savings		$225,000		$110,000
		Payback period		3.1	years	3.6	years
		Rate of return		32.1%		27.5%
Questions	Base on the Payback calculations above, which project would you accept? Why. Assume for project A the investment was $980,000 and annual savings was $210,000 and for Project B Investment was $850,000 and Annual savings was $300,000. Which project would you recommend after the changes? Why? How do the changes in Investments and Annual Savings affect the Rate of Returns for each project? What does the changes in Rate of Return mean to the investor?