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

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$ $65,200$$ $76,000$

$125,00017,000$

$230,00020,000$

$323,00028,000$

$410,000232,000$

What is the payback period for both projects? $($Round the final answers to $2$ decimal places.$)$

Payback period

Project A

years

Project B

years

Which project should the company accept?

multiple choice

Project A

Project B