Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a four-year cutoff for projects. The required return is 11 percent.

The payback for Project A is ____ while the payback for Project B is ____. The NPV for Project A is _____ while the NPV for Project B is ____. Which project, if any, should the company accept?

Year Cash Flow Cash Flow(B 0 -$75,000 -$85,000 1 27,700 6,200 2 26,500 9,400 28,100 24,200 4 15,600 32,600