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Question 6 Not yet answered Marked out of 1.00 Flag question Use the following data for questions 6 to 8: An investor has to make a choice between the following two projects. Project 1: Buying a warehouse for $500,000 of initial investment. Clients will come to the warehouse to collect their orders. Project 1 has the following forecasted cash-flows per year for five years (in thousands of $): Period 0 1 2 3 4 5 Cash Flow - 500 - 20 100 230 300 130 Project 2: Starting a transporting company with an initial investment for a truck of $250,000 and deliver the orders at the client's home. This project is expected to generate the following annual cash-flows (in thousands of $): 0 1 2 3 4 5 Period Cash Flow - 250 60 70 85 75 10 6. The investor needs recover the initial investment within 3 years and 6 months. Using the Payback Period decision making rule, which project(s) would you recommend to the investor? O A Project 1 OB. Project 2 OC. Neither O D. Both projects have a Payback Period within the required 3 years and 6 months Next page