Question: Ther e a project's payback, the better the project is. However, payback has 3 main disadvantages: (1) Al dollars received in different years are given

Ther e a project's payback, the better the project is. However, payback has 3 main disadvantages: (1) Al dollars received in different years are given me weight. (2) Cash flows beyond the payback year are ignored. (3) The payback merely indicates when a projects investment will be recovered. There is no necessary relationship between a given payback and investor wealth maximization A variant of the regular payback is the discounted payback Unise regular payback, the discounted payback considers costs. However, the discounted payback still disregards cash flows beyond the payback year. In addition, there is no specific payback rule to justify project acceptance. Both methods provide information about it and risk. Quantitative Problemi Belinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 7%. Project A Project B -1,100 1,100 600 200 445 380 250 400 300 750 What is Project A's payback? Do not round intermediate calculations, Round your answer to four decimal places What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. years What is Project B's payback? Do not found intermediate calculations. Round your answer to four decimal places What is Project discounted payback? Do round intermediate calculations. Round your answer to four decimal places years

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