Project A: Even cash flows of $28,000 per year. Project B: $48,000, $40,000, $36,000, $20,000, and $12,000. Required: 1. Calculate the payback period for Project A: Payback period = 3.0 years 2. Calculate the payback period for Project B by completing the following table. Round payback period to one decimal place. Unrecovered Investment Annual Cash Flow Time Year (beginning of year) Needed for Payback 1 2 84,000 36,000 V $ 48,000 1 40,000 0.9 year year* Thus, the payback for Project B is 1.9 years and is shorter than payback for Project A; thus Project B is less risky and has less impact on liquidity. 3. Now assume that a third project, Project C becomes available with the same investment outlay and the following annual cash flows (projects, A, B, and C are mutually exclusive): Project C: $66,000, $20,000, $50,000, $50,000, $50,000 a. Calculate the payback for Project C (round to one decimal place): 1.9 years. b. Project C has the same payback as Project B but should be preferred over Project B for two reasons. First, Project C provides $ 12,000 X