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Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both

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Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 9 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively Time: Project A Cash Flow Project B Cash Flow 0 1 2 3 -26,000 16,000 36,000 7000 -36,000 16,000 26,000 56,000 Use the Pl decision rule to evaluate these projects; accept the project with the higher Pl value. Multiple Choice reject A, accept B accept both A and B accept A rejecto accept neither Anor

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