3. Calculating Payback. Global Toys Inc., imposes a payback cutoff of three years for its international investment

projects. If the company has the following two projects available, should it accept either of them?

Year Cash Flow (A)     Cash Flow (B)

    0       −$55,000            -$95,000

     1        $19,000              $18,000

     2       $27,000                $26,000

     3        $ 24,000              $28,000

     4      $9,000                    $260,000

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