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$$ $86,000$$ $100,000$

$133,00025,000$

$238,00028,000$

$331,00036,000$

$418,000240,000$

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