You have been told that your organization will accept a project that has a payback of 3 years or less. You have $100 to invest, and you can accept either Project A or Project B. According to your decision criteria, which project should be chosen? What are the problems with this analysis and the decision?

Project A: NINV = 100: NCF1 = 20 : NCF2 = 30: NCF3 = 50

Project B: NINV = 100: NCF1 = 20: NCF2 = 30: NCF3 = 45: NCF4 = 200