Payback period was the earliest rate, the project will break even. The equation is: selection criterion. The is a "break-even" calculation in the sense that if a project's cash flows come in at the expected Number of Payback=yearspriorto+CashflowduringfullrecoveryyearUnrecoveredcostatstartofyear full recovery The a project's payback, the better the project is. However, payback has 3 main disadvantages: (1) All dollars received in different years are given weight. (2) payback and investor wealth maximization. A variant of the regular payback is the discounted payback. Unlike regular payback, the discounted payback considers costs. However, the discounted payback still disregards cash flows the payback year. In addition, there is no specific payback rule to justify project acceptance. Both methods provide information about and risk. lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 7%. What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places. years What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. years What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places. years What is Project B's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. years