Problem 1: Calculating Payback. The payback period for the following set of cash flows years. is Year 0 1 2 3 4 Cash flows -25,000 5,500 8,500 9,000 15,000 1. Points: 10 Problem 2: Calculating Payback. Tulip Mania, Inc., imposes a payback cutoff of 3 years for its international investment projects. They are currently evaluating the following two projects: Year Cash flow (A) Cash flow (B) 0 -70,000 -100,000 1 48,000 10,000 2 25,000 25,000 3 15,000 40,000 5,000 100,000 years. 2a. The payback period for project A is 2a. Points: 4 2b. The payback period for project B is 2b. Points: 4 2c. Tulip Mania should accept project 2c. Points: 2 years