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The Shell company is considering two mutually exclusive projects (that is, it can only invest in one project): project A or project B. Each requires an initial investment of $100,000. The president of the company has set the maximum payback period of 4 years. The after-tax cash inflows associated with each project are as follows:

Year	A Cash Inflows		Year	B Cash Inflows
1	$10,000		1	40,000
2	20,000		2	30,000
3	30,000		3	20,000
4	40,000		4	10,000
5	20,000		5	20,000

a)Determine the payback period of each project.

b)Which project should the company invest in? Why?