Gator Lover's Ice Cream is a small ice cream manufacturer. They want to either open a new store (Project A) or buy a new machine to mass produce ice cream to sell to supermarkets (Project B).

Calculate the payback period for both products. Then, in 3-5 sentences, discuss which project the ice cream store should go with and explain why.

	Project A	Project B
Total Years 1-5	$75,000	$75,000
Initial Investment	($48,000)	($52,000)
Year	Operating Cash Inflows (post-tax)
1	$15,000	$18,000
2	$15,000	$20,000
3	$15,000	$15,000
4	$15,000	$12,000
5	$15,000	$10,000