1. Bill Williams has the opportunity to invest in project A that costs $6,200 today and promises to pay annual cash flows of $2,300, $2,500, $2,500, $2,000 and $1,800 over the next 5 years. Or, Bill can invest in $6,200 in project B that promises to pay annual cash flows of $1,500, $1,500, $1,500, $3,600 and $4,100 over the next 5 years.
a. How long will it take for Bill to recoup his initial investment in project A?
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