Long-term investment decision, payback method Personal Finance ProblemBill Williams has the opportunity to invest in project A that costs $9,100 today and promises to pay $2,100, $2,400, $2,400, $2,000 and $1,800 over the next 5 years. Or, Bill can invest $9,100 in project B that promises to pay $1,600, $1,600, $1,600, $3,600 and $4,100over the next 5 years.

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?