Assume a $85,000 investment and the following cash flows for two alternatives: Year 1 2 3 4 5 Investment A $20,000 25,000 25,000 15,000 4,100,000 Investment B $25,000 20,000 50,000 Calculate the payback for investment A and B. (Round the final answers to 2 decimal places Investment A Investment B Payback period years 1 years Which of the alternatives would you select under the payback method? Investment A O Investment B King's Department Store is considering the purchase of a new machine at a cost of $26,325. The machine will provide $3,900 per year In cash flow for thirteen years. King's cost of capital is 10 percent. a. What is the IRR? (Use a Financial calculator to arrive at the answers. Round the final answer to the nearest whole percent.) IRR 24 b. Using the IRR method, evaluate this project and indicate whether it should be undertaken. No Yes