Q2. Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two independent projects. Project Hydrogen requires an initial outlay of $25,000; project Helium requires an initial outlay of $35,000. Using the expected cash inflows given for each project in the following table, calculate each project's payback period. Which project meets Elysian's standards? Years Hydrogen Helium $6,000 $7,000 2 6,000 7,000 3 8,000 7,000 4,000 7,000 3,500 7,000 6 2,000 7000 1 4 5 Solution