Vaughn Inc. has two projects as follows:
Project Initial CF CF1 CF2 CF3 CF4
A -2,520 920 1,270 1,000 1,970
B -3,070 820 1,570 1,000 3,970
If Vaughn set 2.37 years as a cut-off period for screening projects, which projects will be selected, using the payback period method?
(Round answers to 2 decimal places, e.g. 125.25.)
Project A payback period years
Project B payback period years
will be selected.