Capital Budgeting Decision Criteria: Payback Payback was the earliest____selection criterion. The____is a "break-even" calculations in the sense that if a project's cash flows come in at the expected rate, the project will break even. The equation is: The____a project's payback, the better the project is. However, payback has 3 main disadvantage: (1) Dollars received in different years are given____weight. (2) Cash flows beyond the payback year are ignored. (3) The payback merely indicates when a project's investment is recovered. There is no necessary relationship between a given payback and investor wealth maximization. A variant of the regular payback is the discounted payback. Unlike regular payback, the discounted payback considers____costs. However, the discounted payback still disregards cash flows____the payback year. In addition, there is no specific payback rule to justify project acceptance. Both methods provide information about_____and risk. Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirement, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 10%. What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations. What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations. What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations. What is Project B's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations