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You are considering investment in the following projects. Project As cash flows Year 0 Year 1 Year 2 Year 3 Year 4 -$12,000 $7,000 $3,000

You are considering investment in the following projects.

Project As cash flows

Year 0

Year 1

Year 2

Year 3

Year 4

-$12,000

$7,000

$3,000

$2,000

$1,500

Project Bs cash flows:

Year 0

Year 1

Year 2

Year 3

Year 4

-$11,000

$6,000

$2,500

$1,500

$1,200

Payback Period for project A is ______ and Payback Period for project B is _______. (SHOW WORK)

A. 2 years; 2.83 years B. 3 years; 3.83 years C. 2.83 years; 3.83 years D. 3.83 years; 3 years E. 3 years; 2.83 years

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