1. Award: 10.00 points Problem 9-3 Calculating Payback (LO2) McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Year 0 1 2 3 4 Cash Flow (A) -$ 67,800 26,000 31,000 24,000 11,000 Cash Flow (B) $ 79,000 18,000 21,000 29,000 233,000 What is the payback period for both projects? (Round the final answers to 2 decimal places.) Project A Project B Payback period years years Which project should the company accept? Project A Project B Problem 9-4 Calculating Discounted Payback (L03) An investment project has annual cash inflows of $6,000, $6,200, $7,000, and $8,300, and a discount rate of 14%. What is the discounted payback period for these cash flows if the initial cost is $8,250? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $11,825? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $15,400? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Discounted payback period years References Worksheet Problem 9-4 Calculating Discounted Payback (L03) Learning Objective: 09-03 The discounted payback rule and some of its shortcomings