(Payback period calculations) You are considering three independent projects: project A, project B, and project C. Given the cash flow information below, calculate the payback period for each. If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted? What is the payback period of project A?

Initial Outlay -1,000 -10,500 -6,500

Inflow year 1 500 4,000 1,000

Inflow year 2 200 3,000 1,000

Inflow year 3 100 3,000 4,000

Inflow year 4 300 3,000 4,000

Inflow year 5 400 3,000 4,000