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Use the table for the question(s) below. Consider the following two projects with cash flows in $: Project Year 0 Cash Flow Year 1 Cash

Use the table for the question(s) below. Consider the following two projects with cash flows in $:

Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Discount Rate
A -100 40 50 60 N/A .15
B -73 30 30 30 30 .15

The payback period for project A is closest to:

2.0 years.

2.2 years.

2.5 years.

2.4 years.

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