Please show your work!

1.You are considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should you accept and what is the best reason for that decision?

Year Project A Project B

0 -46,000 -46,000

1 25,000 11,000

2 18,000 19,000

3 16,000 32,000

2.What is the payback period for a project with the following cash flows?

Year Cash Flow

0 -58,700

1 19,600

2 22,300

3 14,800

4. 11,600