Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information,

a.calculate the payback period for each.

b. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?

Year Project A ($) Project B ($) Project C ($) 0 (Investment) -2,000 -$5,000 1 -2,000 800 2 -$10,000 -6,000 4,000 3,000 2,000 2,000 3 600 600 -2,000 5,000 5,000 5,000 2,000 4 5 400