Project K costs $55,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 10%. What is the projects payback? Round your answer to two decimal places.

Question 2 of 6 12-2: Net Present Value (NPV) Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $40 $45 $165 $45 $165 $45 Project A -$300 $40 $40 Project B -$600 $350 $350 Which project would you recommend? Select the correct answer. O I. Neither A or B, since each project's NPV 0. O III. Project A, since the NPVA > NPVB. O IV. Project B, since the NPVB > NPVA O V. Both Projects A and B, since both projects have IRR's > 0