Global Toys Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?

Year _________Cash Flow (A) _________Cash Flow (B)

0 ...................... −$55,000 .................... −$ 95,000

1 ......................... 19,000 ........................ 18,000

2 ......................... 27,000 ........................ 26,000

3 ......................... 24,000 ........................ 28,000

4 .......................... 9,000 ....................... 260,000