What is the payback period for each project?

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

Walk me through this problem step by step or write the formula with the numbers filled in so I can practice.

Use the following information to answer questions 8, 9, and 10. Consider the two mutually exclusive projects Year Cash Flow Project A Cash Flow Project B 0 -$25.000 -$25.000 4.000 8.000 5.000 7.000 3 5.000 5.000 7.000 5.000 5 10.000 4.000 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