A Company Produces Two Boat Models, Montauk and Orient Required:
Use the Payback Period to Evaluate These Two Investment

A company produces two boat models, Montauk and Orient. Both products are being considered for major investment projects next year. Relevant data follow: $\begin{array}{lrl}&\text { Montauk}&\text { Orient }\\\text { New investment } & \$ 424,000 & \$ 380,000 \\\text { Expected 3-year net cash flows: } & & \\\text { Year 1 } & 150,000 & 130,000 \\\text { Year 2 } & 160,000 & 130,000 \\\text { Year 3 } & 170,000 & 130,000\end{array}$
Required:
Use the payback period to evaluate these two investment projects.