Required rate of return 10% 13% Required payback period 2.0 years 2.0 years Based on the net present value method of analysis and given the information in the problem, you should:

accept both projects A and project B.

accept project A and reject project B.

accept whichever one you want as they represent equal opportunities

accept project B and reject project A.

Project A Year Cash Flow -S75,000 $19,000 2 $48.000 3 S12,000 Project B Year Cash Flow -S70,000 $10,000 $16,000 $72,000