Sheridan Crafts Corp. management is evaluating two independent capital projects that will each cost the company $290,000. The two projects will provide the following cash flows:

Year		Project A		Project B
1		$82,750		$45,600
2		97,450		78,125
3		36,235		178,900
4		133,655		78,110

What is the payback period of both projects? (Round answers to 2 decimal places, e.g. 15.25.)

The Payback of Project A is years and Project B is years.

Cullumber Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given in the following table. The firm uses a discount rate of 15.62 percent for such projects.

Year		Product Line Expansion			Production Capacity Expansion
0		-$2,867,100			-$6,652,400
1		623,100			3,077,800
2		1,024,000			3,077,800
3		1,024,000			3,077,800
4		1,024,000			2,527,900
5		1,024,000			2,527,900

a. What are the NPVs of the two projects? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

NPV of product line expansion is		$
NPV of production capacity expansion is		$