Consider the following two investments:
                                                Project
X         Project
Y
            Initial
investment        $100,000         $100,000
            Year
1 cash
inflow      $50,000           $80,000
            Year
2 cash
inflow      $40,000           $28,000
            Year
3 cash
inflow      $30,000           $18,000
           
Ignore time value of money, which project has the shortest
payback period?
a. project Y b. project x