QUESTION TWO Two projects are being considered. Assume cost of capital (required rate of return) of 8% for the duration Period 0 Initial Outlay Cash Outflows 1 Project A R (50,000) 14,000 20,000 26,000 5,000 Project B R (30,000) 4,000 8,000 12,000 10,000 2. 3 4 8% Present value factors: Year 1 = 0.9259 Year 2 = 0.8573 Year 3 = 0.7938 Year 4 = 0.735 Required: 2.1 Determine which of the above projects has the shortest payback period