Calculating Payback Kara, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?

Year

Cash Flow $($A$)$

Cash Flow $($B$)$

$0$

$$$$40,000$

$$$$55,000$

$1$

$14,000$

$11,000$

$2$

$18,000$

$13,000$

$3$

$17,000$

$16,000$

$4$

$11,000$

$255,000$