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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 342,000 $ 50,500 1 53,000 24,800 2 73,000 22,800

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 342,000 $ 50,500 1 53,000 24,800 2 73,000 22,800 3 73,000 20,300 4 448,000 15,400 Whichever project you choose, if any, you require a 14 percent return on your investment. a-1 What is the payback period for each project Project A:______years Project B:______years

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