Riverside Manufacturing Company is evaluating two potential projects with the following net cash flows. The company's required rate of return on investments is 12%. Use appropriate factors from the tables provided.

• Project A: Initial Investment: $350,000; Year 1: $90,000; Year 2: $120,000; Year 3: $150,000; Year 4: $80,000
• Project B: Initial Investment: $450,000; Year 1: $150,000; Year 2: $170,000; Year 3: $180,000; Year 4: $100,000
• a. Compute the payback period for each project. Based on the payback period, which project is preferred?
• b. Compute the net present value for each project. Based on the net present value, which project is preferred?