Shell is considering two mutually exclusive projects, A and B. Each requires an initial investment of $100,000. The company's president set a maximum payback period of 5 years. If the company expects to receive the following after-tax cash inflows from each project, what is each project's simple payback period?

Year	Cash inflows project A	Cash inflows project B
1	$10,000	$40,000
2	$20,000	$30,000
3	$30,000	$20,000
4	$40,000	$10,000
5	$20,000	$20,000

	a.	Payback periods: A=4years, B=5years
	b.	Both projects have a payback period of 4 years
	c.	Both projects have a payback period of 5 years
	d.	Payback periods: A=5years, B=4years