The Bolster Company is considering two mutually exclusive projects:

Year Cash Flow A Cash Flow B

$0-$$$100,000-$$$100,000$

$131,2500$

$231,2500$

$331,2500$

$431,2500$

$531,250200,000$

The required rate of return on these projects is $12$ percent.

a$.$ What is each project's payback period?

b$.$ What is each project's discounted payback period?

c$.$ What is each project's net present value?

d$.$ Fully explain the results of your analysis. Which project do you prefer, and why?