• Tri Star, Inc., has the following mutually exclusive projects:

Year Project A Project B

0 $ 14,300 $ 9,700

1 8,900 4,400

2 7,500 3,900

3 2,100 6,300

Calculate the payback period for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Payback Period

Project A years

Project B years

Based on the payback period, which project should the company accept?

Project B

Project A