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Sunland Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years...

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Finance

Sunland Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $1,131,840, and project Bs cost is $1,315,000. Cash flows from both projects are given in the following table.

Year Project A Project B
1 $86,212 $586,212
2 313,562 413,277
3 427,594 231,199
4 285,552

What are their discounted payback periods? (Round answers to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0.00 for the answer.)

Discounted payback period of project A
Discounted payback period of project B

Which will be accepted with a discount rate of 8 percent?

Sunland should choose ______

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