Timeline Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $715,740, and project B’s cost is $1,201,700. 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.)

1) Discounted payback period of project A = ____________

2) Discounted payback period of project B + ___________

3) Which will be accepted with a discount rate of 8 percent? Timeline should choose