Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the project are two and two and a half years, respectively. Time Cash Flow 125,000 65,000 78,000 105,000 105,000 25,000 0 Calculate the NPV and use the NPV rule to evaluate this project; should it be accepted or rejected and why? 8. Suppose your firm is considering two mutually exclusive. required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 10 percent. and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three and a half years, respectively. Time Project A Cash Flow -1,000 Project B Cash Flow -500 0 300 200 2 400 400 700 300 Calculate the payback and use the payback decision rule to evaluate these projects; which one(a) should be accepted or rejected and why