3 MBA5903 OCTOBER NOVEMBER 2017 [11 Marks] Question 3 Valley Corporation is considering two independent investments having the following cash flow streams Project A R Project B R Year 0 1 2 -50,000 20,000 20,000 10,000 5,000 5,000 -40,000 20,000 10,000 5,000 5,000 40,000 3 4 5 Valley uses a combination of the net present value approach and the payback approach to evaluate investment alternatives It requires that all projects have a positive net present value when cash flows are discounted at 10 percent and that all projects have a payback no longer than three years. Required: (11) Which projects should Valley Corporation accept? Explain