You recently accepted an assignment with Oxford Limited as a financial consultant. One of your first assignments is the analysis of two proposed capital investment projects. Details of initial investments, after-tax cash flows and average annual profits are represented below:

Year After-tax Cash flows Initial investments Cash flows Average annual profits 1 2 3 4 Project A Project B (R50 000) R26 200 R12 200 R12 200 R5 000 R1 400 (R50 000) R14 200 R14 200 R14 200 R14 200 R1 700 2.1. Which project has a shorter payback period? Motivate your answer by doing the relevant calculations (answers expressed in years, months, and days). 20 Marks