Provide an evaluation of two proposed project, both with a 5-year expected lives and identical initial outlays of $110,000.Both of these projects involve additions to a highly successful product line, and as a result, the required rate of return on both projects has been established at 12 percent.The expected free cash flows from each project are as follows:

Project A

Project B

Initial outlay

-$110,000

-$110,000

Inflow year 1

20,000

40,000

Inflow year 2

30,000

40,000

Inflow year 3

40,000

40,000

Inflow year 4

50,000

40,000

Inflow year 5

70,000

40,000

What is the payback period on each project? If the organization imposes a 3-year maximum acceptable payback period, which of these projects should be accepted?