Suppose your firm is considering two independent projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is $12$ percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three years, respectively.

$\backslash$table$[[$Time$,0,1,2,3],[$Project A Cash Flow,$-5,000,1,000,3,000,5,000],[$Project B Cash Flow,$-10,000,5,000,5,000,5,000]]$

Use the PI decision rule to evaluate these projects; which one$($s$)$ should be accepted or rejected?

Accept neither A nor B

Accept A$,$ reject B

Accept both A and $B$

Reject A$,$ accept B