1. What is the payback period for project A and B?

2. Should project A and B be accepted or rejected?

Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 $15,000 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $95,000 $28,500 $38,000 $9,500 $19,000 $0 $0