Below are two after-tax cash flows for two proposed projects, S and R. If WACC = 5%, which project(s) would be acceptable and why?

Year 0 1 2 3

S - 400 100 200 300

R - 400 150 150 250

		NPV(S) > 0, acceptable; NPV(R) < 0, reject
		NPV(S) > 0, acceptable; NPV(R) > 0, acceptable
		NPV(S) < 0, reject; NPV(R) < 0, reject
		NPV(S) < 0, reject; NPV(R) > 0, acceptable