How do we calculate the Payback period? Gator Lover's Ice Cream is a small ice cream manufacturer. Gator Lover's Ice Cream wants to either open a new store (Project A) or buy a new machine to mass produce ice cream to sell to supermarkets (Project B). The relevant cash flows are shown in the Table "Gator Lover's Ice Cream Project Analysis". Gator Lover's Ice Cream Project Analysis Project A Project B Initial Investment 48.000 EUR 52.000 EUR Year Operating Cash Inflows (after-tax) 1 15.000 EUR 18.000 EUR 2 15.000 EUR 20.000 EUR 3 15.000 EUR 15.000 EUR 4 15.000 EUR 12.000 EUR 5 15.000 EUR 10.000 EUR Total Years 1-5 75.000 EUR 75.000 EUR Let's calculate the payback period for both projects