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Discounted payback: Timeline Manufacturing Co. management is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $1,912,855, and project B's cost is $1,875,000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?

Year

Project A

Project B

1

$ 186,212

$516,212

2

393,562

613,277

3

497,594

731,199

4

485,552


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