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Moss fashions imposes a payback period method for its below international investment projects. If a company has the following two projects. According to payback, which

  1. Moss fashions imposes a payback period method for its below international investment projects. If a company has the following two projects. According to payback, which project should be accepted, and which should be rejected? (10 marks)
Year Cash flow (A) Cash flow (B)
0 -$125,000 -$355,000
1 $59,000 $75,000
2 $50,000 $92,000
3 $35,000 $150,000
4 $25,000 $280,000

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