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Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment...

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Finance

Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available.

Year Cash Flow A Cash Flow B
0 $ 49,000 $ 94,000
1 19,000 21,000
2 25,400 26,000
3 21,000 33,000
4 7,000 246,000

Requirement 1:

What is the payback period for each project? (Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Payback period
Project A _______________years
Project B ________________years

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