Question: Timeline Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $738,340, and

Timeline Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $738,340, and project Bs cost is $1,099,100. Cash flows from both projects are given in the following table.

Year Project A Project B

1 $86,212 $586,212

2 313,562 413,277

3 427,594 231,199

4 285,552

What are their discounted payback periods? (Round answers to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0.00 for the answer.)

Discounted payback periods of project A =

Discounted payback periods of project B =

Which will be accepted with a discount rate of 8 percent?

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