Consider the following 2 mutually exclusive projects:
Cash Flow a Cash Flow b
Year 0 -343,000 - 50,000
Year 1 52,000 24,700
Year 2 72,000 22,700
Year 3 72,000 20,200
Year 4 447,000 15,300
Whichever project you choose if any you require a 16% return on your investment.
What is the buyback period for each project?