Paybock period was the earliest selection criterion. The is a "break-even" calculation in the sense that if a project's cash flows come in at the smpected rate, the project will break even. The equation is: fallrecovery The Aroject's payoack, the better the project is. However, poyback has 3 main disadvantages: (1) All dollars received in differeit years are given Cash fiew beyend the piyback year are ignored. (3) The paybock merely indicates when o project's investment will be recovered. There is no necessary relationship between a given parback and investor weath mavimizabon. A variant of the rogular parbotk is the disceunted payback. Unlike regular payback, the discounted payback considers costs. However, the discounted payback still darepards cath flewn the payback year. In additon, there is no soecifc payback nule to justify project acceptance. Both methods provide information about and risk. Quentitutive Problemt Belinger indisties is considering two projects for inclualon in its capital budget, and you have been asked to do the analysis. Both projects' after-tix cash Fass are shown on the time Ine beiow. bepredotion, salvage values, net operating working capital requirementa, and tax effects are asl included in these cash flows. Both projects and risk. Wenatitative Probiemi fellinger Industries is considering two projects for indusion in its capital budget, and you have been asked to do the analysis, Both projects' after-tax cash flows are shown on the time line below. Deprecabion, solvage values, net operating working capital requirements, and tox effects are all included in these cash flows. Both projects have tyear ives, and they have risk thoroctenstes simular to the firm's average project. Belinger's WACC is B\%. What is Broject A's payback ? bo not round intermediate calculations. Round your answer to four decimal places. Whist is Project N's dincounted paybockt Do not round intermedate calculabone. hound your answer to four decimal ntaces. What in frofed Es paybide? Do not round intermediath calculations. flound your answer to four decimal places