Long$-$term investment decision, payback method Personal Finance Problem. Bill Williams has the opportunity to invest in project A that costs $$8,700$ today and promises to pay $$2,300,$$$2,500,$ $$2,500,$

$$1,900$ and $$1,800$ over the next $5$ years. Or$,$ Bill can invest $$8,700$ in project B that promises to pay $$1,400,$$$1,400,$$$1,400,$$$3,500$ and $$4,100$ over the next $5$ years. $($Hint: For mixed stream cash inflows,

calculate cumulative cash inflows on a year$-$to$-$year basis until the initial investment is recovered.$)$

a$.$ How long will it take for Bill to recoup his initial investment in project A$?$

b$.$ How long will it take for Bill to recoup his initial investment in project B$?$

c$.$ Using the payback period, which project should Bill choose?

d$.$ Do you see any problems with his choice?