Keone Products Company is considering an investment in one of two new product lines. The investment required for either product line is $$750,000.$ The net cash flows

associated with each product are as follows:

a$.$ Recommend a product offering to Keone Products Company, based on the cash payback period for each product line.

Payback period for liquid soap

Payback period for body lotion

b$.$ The project with the

net cash flows in the early years of the project life will be favored over the one with the

flows in the initial years.