Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available.

Year Cash Flow A Cash Flow B

0 $ 56,000 $ 101,000

1 22,500 24,500

2 29,600 29,500

3 24,500 29,500

4 10,500 239,000

Requirement 1: What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Payback period Project A ________ years Project B___________ years

Requirement 2: Should it accept either of them? (Click to select)

Accept project B and reject project A_____

Reject both projects A and B________

Accept project A and reject project B__________

Accept both projects A and B__________