10-7. (Payback period calculations) You are considering three independent projects: project A, project B, and project C. Given the following free cash flow information, calculate the payback period for each Initial outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year5 If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted? PROJECT A $1,000 600 300 200 100 500 PROJECT B $10,000 5,000 3,000 3,000 3,000 3,000 PROJECT C $5,000 1,000 1,000 2,000 2,000 2,000