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Quattro, Inc. has the following projects available. The company has historically used a 4-year cutoff (payback period) for projects. The required return rate is 11%.

YearCash Flow ACash Flow B

0$(82,000) $(125,000)

1$16,000 $38,000

2$18,000$33,000

3$24,000$31,000

4$26,000$27,000

5$32,000$25,000

a) What is the payback period for each project?

b) What is the NPV for each project?

c) Which project, if any, should the program accept and why?

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