abc Inc., is considering two projects. Each requires an initial investment of $100,000. John Proton, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows...

Extracted text: abc Inc., is considering two projects. Each requires an initial investment of $100,000. John Proton, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table. Cash inflows (CF,) Year Project A Project B $10,000 $40,000 2. 20,000 30,000 3 30,000 20,000 4 40,000 10,000 5 20,000 20,000 Compute the payback period of each project. Which should the company invest in, firstly, what if the projects are independent? Secondly, what if the projects are mutually exclusive? Please support your recommendations of project investment with own interpretations.