Below are two after-tax cash flows for two proposed projects, K and T. If WACC = 8.68%, which project(s) would be acceptable?

Year 0 1 2 3

K -20,000 8,000 8,000 8,000

T -20,000 0 0 25,000

		NPV(K) > 0, acceptable; NPV(T) > 0, acceptable
		NPV(K) > 0, acceptable; NPV(T) < 0, reject
		NPV(K) < 0, reject; NPV(T) > 0, acceptable
		NPV(K) < 0, reject; NPV(T) < 0, reject