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Problem 2: Calculating Payback. Tulip Mania, Inc., currently evaluating the following two projects: Year Cashflow (A) Cashflow (B) 0 -80,000 -100,000 1 45,000 10,000 2

Problem 2: Calculating Payback. Tulip Mania, Inc., currently evaluating the following two projects:

Year

Cashflow (A)

Cashflow (B)

0

-80,000

-100,000

1

45,000

10,000

2

25,000

40,000

3

20,000

45,000

4

10,000

120,000

2a. The payback period for project A is _______years.

2b. The payback period for project B is _______years.

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