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McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Year 0 1 2

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McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Year 0 1 2 3 Cash Flow (A) -$ 78,200 30,000 35,000 28,000 15,000 Cash Flow (B) -$ 91,000 22,000 25,000 33,000 237,000 4 What is the payback period for both projects? (Round the final answers to 2 decimal places.) Payback period years Project A Project B years Which project should the company accept? O Project A Project B

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