Bennett Company is a medium sized metal fabricator that is currently contemplating two projects: Project A requires an initial investment of $42,000 and project B requires an initial investment of $45,000. The relevant cash flows for the two projects are presented on the timelines. $14,000 $14,000 $14,000 $14,000 $14,000 Project A End of Year $42,000 $28,000 $12,000 $10,000 $10,000 $10,000 Project B 0 1 End of Year $45,000 438 PM CAPITAL BUDGETING Payback Period: Example (cont.) The payback period for project A is: The payback period for project B is