9-7A. (Payback period calculations) You are considering three independent projects, project A, project B, and project C. The required rate of return is 1°percent on each. Given the following free cash flow information, calculate the payback period and discounted payback period for each.

Ifyou require a three-year payback for both the traditional and discounted payback period methods before an investment can be accepted, which projects would be accepted under each criterion?

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YEAR PROJECT A PROJECT B PROJECT C 0 -$1,000 -$10,000 -$5,000 1 600 5,000 1,000 2 300 3,000 1,000 3 200 3,000 2,000 100 3,000 2,000 5 500 3,000 2,000