La Conner Co-op is considering the following two mutually exclusive projects. Which project(s) should be recommended?

Project A Project B

Year Cash Flow Year Cash Flow

0 -$65,000 0 -$80,000

1 $19,000 1 $10,000

2 $58,000 2 $10,000

3 $11,000 3 $92,000

Required rate of return:

10 percent (for A) 13 percent (for B)

Group of answer choices

accept project A and reject project B.

accept project B and reject project A.

accept both project A and project B.

reject both project A and project B.