Elysian Fields, Inc., uses a maximum payback period 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $27,000; project Helium requires an initial outlay of $33,000. Using the expected cash inflows given for each project in the following table:

Expected cash flows:

Year Hydrogen Helium

1 $6,000 $7,500

2 $5,500 $6,000

3 $7,000 $9,000

4 $5,000 $5,000

5 $2,000 $5,500

6 $3,000 $4,500

calculate each projects's payback period. Which project meets Elysian's standards?

The payback of project Hydrogen is _____ years. Round to two decimal places.

I am confusing when I need to do the formula:

% of Year t= (Initial investment -Amount recovered at year t-1/Inflow at year t) 100.