Kara, Incorporated, 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	$ 50,000	$ 95,000
1	19,500	21,500
2	26,000	26,500
3	21,500	32,500
4	7,500	245,000

1. What is the payback period for each project?

   Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

2. Which, if either, of the projects should the company accept?