1)

The following are the cash flows of two projects:

Year	Project A			Project B
0	$	250		$	250
1		130			150
2		130			150
3		130			150
4		130

What is the payback period of each project? (Round your answers to 1 decimal place.)

2)

A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000. What is the project's cash flow from net working capital at time zero?

$8,000

$8,000

$6,000

$6,000