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2. Suppose your firm is considering two mutually exclusive projects with the following cash flows. Assume that both projects require a rate of return of

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2. Suppose your firm is considering two mutually exclusive projects with the following cash flows. Assume that both projects require a rate of return of 8 percent (WACC). The maximum allowable payback and discounted payback statistics for the projects are two and three years, respectively. Time 0 1 2 3 Project A Cash Flow -20,000 10,000 30,000 1000 Project B Cash Flow -30,000 10,000 20,000 50,000 Use the NPV, IRR, MIRR, payback, and discounted payback decision rules to evaluate the projects; which one(s) should be accepted or rejected

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