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Jim Carver Inc. is considering the following mutually exclusive projects. The company's Cost of Capital is 15 percent and the Cost of Equity is 20%.

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Jim Carver Inc. is considering the following mutually exclusive projects. The company's Cost of Capital is 15 percent and the Cost of Equity is 20%. What are the project's payback years in an order of Project A and Project B? (The units are in years.) Year Project A CFS 0 (5,000) 300 1 Project B CFS (5,000) 3,200 2,500 1.800 1,000 2 900 3 3.000 5.700 4 O 3.15: 1.72 04.17: 2.72 O 3.17: 1.28 03.86: 1.56

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