two mutually exclusive projects

year 0 a- -25,000 b. - -25,000

year 1 a- 4000 b.-8000

year 2 a- 5000 b.-7000

year 3 a- 5000 b.-5000

year 4 a- 7000 b.-5000

year 5 a- 10,000 b.-4000

Whichever project is chosen, if any, you require a 5% return on your investment.

8a. What is the payback period for each project?

8b. If you base your decision on which project has the shortest payback, which will you choose?