QUESTION 15 FOR THIS AND THE NEXT QUESTION. Suppose a firm accepts a project if the payback period or discounted payback period is 2 years or less. If the following two projects are mutually exclusive, what should be the correct capital budgeting decision using PAYBACK PERIOD? Cost of capital is 8% Project Year Project A -450 -450 240 300 200 120 100 100 Choose Project A, because its payback period is 2.1 years Choose Project A, because its discounted payback period is 2.71 years Choose Project B, because its payback period is 2.3 years Choose Project B, because its discounted payback period is 2.87 years Choose none of the projects Choose both projects QUESTION 16 REFER TO THE ABOVE PROBLEM. What should be the correct capital budgeting decision using DISCOUNTED PAYBACK PERIOD? Cost of capital in 8% Choose Project A, because its payback period is 2.1 years Choose Project A, because its discounted payback period is 2.71 years Choose Project B, because its payback period is 2.3 years Choose Project B, because its discounted payback period is 2.87 years Choose none of the projects Choose both projects