year	Cash flow A	Cumulative cash flow	cash flow b	cumulative cash flow b
1	25000	25000	64000	64000
2	55000	80000	22000	86000
3	20000	100000	14000	100000
4	150000	250000	20000	120000
5	0	250000	250000	370000
PBP		3 years project A		3 years project B

1. What is the payback period for each project?

2. Which project should you select using a three-year cutoff period?

3. What is the payback period of each project if the initial investment was $150,000?

4. Assuming you have a four-year payback rule, which project would you accept?