equation is:

The

a project's payback, the better the project is$.$ However, payback has $3$ main disadvantages: $(1)$ All dollars received in different years are given

$|$ weight. $(2)$ Cash flows beyond the payback year are

ignored. $(3)$ The payback merely indicates when a project's investment will be recovered. There is no necessary relationship between a given payback and investor wealth maximization.

the payback yea

In addition, there is no specific payback rule to justify project acceptance. Both methods provide information about

and risk.

$9\%.$

Pro

Pro

What is Project A$\text{'}$s payback? Do not round intermediate calculations. Round your answer to four decimal places.

years

What Is Project A$\text{'}$s discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.

years

What is Project B$\text{'}$s payback? Do not round intermediate calculations. Round your answer to four decimal places.

years

What is Project B$\text{'}$s discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.

years