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A company is considering two projects. Project A Project B Initial investment $300,000 $300,000 Cash inflow Year 1 $60,000 $90,000 Cash inflow Year 2 $60,000

A company is considering two projects.

Project A

Project B

Initial investment

$300,000

$300,000

Cash inflow Year 1

$60,000

$90,000

Cash inflow Year 2

$60,000

$80,000

Cash inflow Year 3

$60,000

$80,000

Cash inflow Year 4

$60,000

$50,000

Cash inflow Year 5

$60,000

$70,000

What is the payback period for Project B?

a.2 years

b.4.5 years

c.3.5 years

d.2.5 years

e.3 years

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