The cash flows associated with two different projects are as follows:

Cash Flows	Project A ($ in millions)	Project B ($ in millions)
Initial Outflow	420	160
Year 1	84	40
Year 2	140	80
Year 3	132	80
Year 4	128	20

a. Calculate the payback period of each investment show workings. (2 marks)

b. Which investments does the company accept if the cut-off payback period is three years? Four years? (1 mark)

c. If the company invests by choosing projects with the shortest payback period, which project would it invest in? (1 mark)

d. If the company uses discounted payback with a 12% discount rate and a 4-year cut-off period, which projects will it accept? Show your calculation of discounted payback method for both projects