Consider two projects whose annual net cash flows are not even. Assume that each project costs R200 000. The net cash flows for each year are as follows:

Year Project Mango

1 20 000

2 40 000

3 60 000

4 80 000

5 100 000

Project Orange 100 000

80 000

60 000

40 000 20 000

Calculate the PBP of each project and recommend the project that should be selected based on the payback method