Consider the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0	$	343,000			$	50,000
1		52,000				24,700
2		72,000				22,700
3		72,000				20,200
4		447,000				15,300

Whichever project you choose, if any, you require a 16 percent return on your investment.

a-1	What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Payback period
Project A	years
Project B	years

a-2

If you apply the payback criterion, which investment will you choose?

	Project A
	Project B