Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects.

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$ $60,000$$ $70,000$

$123,00015,000$

$228,00018,000$

$321,00026,000$

$48,000230,000$

What is the payback period for both projects? $($Round your answers to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

Payback period

Project A

years

Project B

years

Which project should the company accept?

multiple choice

Project B

Project A