What are the payback periods of projects E and F in the following table:

LOADING...

?

Assume all the cash flow is evenly spread throughout the year. If the cutoff period is

3

years, which project(s) do you accept?

$40,000

$95,000

Cash flow year 1

$8,000

$9,500

Cash flow year 2

$8,000

$19,000

Cash flow year 3

$8,000

$28,500

Cash flow year 4

$8,000

$38,000

Cash flow year 5

$8,000

$0

Cash flow year 6

$8,000

$0