Suppose your company has two mutually exclusive investment projects to choose from: Project A and Project B. Project A has an initial cash flow (year O) of - $ 100 and an inflow in year 1 of $200. Project B has an initial cash flow (year 0) of -$10,000 and an inflow in year 1 of $14,000. The discount rates of these projects is 40%. If your company can afford either project, then they should: Choose and accept project A. Gather more information Do nothing. Choose and accept project B. You are evaluating a project with initial investment (at year 0) of $290,000 that is expected to produce annual profits of $30,000 for 11 years starting at year 1. Your firm's cost of capital is 7.00% and their preferred payback period is 6 years or less. Will your firm accept or reject the project if they follow the payback rule? The payback rule cannot be applied in this case. Not enough information. Reject. Accept