Kara, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$$40,000$$$55,000$

$114,00011,000$

$218,00013,000$

$217,00016,000$

$411,000255,000$

Question $1$ options:

accept Project B and reject Project A

accept both Project A and Project B

reject both Project A and Project B

accept Project A and reject Project B