Calculating payback periods and NVP

Tri Star Inc. has the follwoing mutually exclusive projects:

Year Project A Project B

0 - 15,000 - 10,300

1 9,500 5,000

2 8,100 4,500

3 2,100 6,900

Calculate the payback period for each project

Project A _______

Project B _______

If the appropriate discount rate is 14 percent, what is the NVP for each project?

Project A ______

Project B ______