Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $100,000. John Shell, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are as follows:

	Cash Flows	Cash Flows
Year	Project A ($)	Project B ($)
1	10,000	40,000
2	40,000	30,000
3	30,000	20,000
4	40,000	10,000
5	20,000	20,000

1.Please determine the payback period of each project and which should the company invest in?