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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 198,772 -$ 16,309 1 27,100 5,797 2 51,000

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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 198,772 -$ 16,309 1 27,100 5,797 2 51,000 8,926 34 56,000 13,465 8,333 Saved 425,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period

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