Given the cash flow of two

projects$$A

and

B$$in

the following table,

and using the payback period decision model, which project$($s$)$ do you accept and which project$($s$)$ do you reject if you have a

$3-$year

cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year.

Question content area bottom

Part $1$

What is the payback period for project A$?$

years $($Round to one decimal place.$)$

Cash Flow A B

Cost $15,000110,000$

Cash flow year $17,50044,000$

Cash flow year $27,50033,000$

Cash flow year $37,50022,000$

Cash flow year $47,50011,000$

Cash flow year $57,5000$

Cash flow year $67,5000$