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3. (5 points) Consider the following two independent investment projects: Cash flows of project A: 0 1 2 3 + -130 100 50 5 Cash

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3. (5 points) Consider the following two independent investment projects: Cash flows of project A: 0 1 2 3 + -130 100 50 5 Cash flows of project B: 0 1 2 3 5 + + + - 130 90 40 40 40 40 If management only accepts projects that pay back in 3 years or less, according to the discounted payback period rule, which projects will be selected? Use a discount rate of 10%

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