Richard's Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $800,000 and may yield the following two expected cash flows, depending on economic conditions. Management requires investments to have a payback of two years, and it requires a 10% return on its investments.

	Period 1	Period 2	Period 3	Period 4
Scenario A	$300,000	$350,000	$400,000	$450,000
Scenario B	$450,000	$400,000	$350,000	$300,000

Question 1: Determine the payback period for both Scenario A and Scenario B.

Question 2: Determine the break-even time for both Scenario A and Scenario B.

Question 3: Determine the net present value for both Scenario A and Scenario B.

Question 4: Which scenario would give more financial benefit to Richard?

Question 5: What are the causes of the differences between Scenario A and Scenario B? Please explain.