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 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively.

Time	0	1	2	3
Project A Cash Flow	20,000	10,000	30,000	1,000
Project B Cash Flow	30,000	10,000	20,000	50,000

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

Multiple Choice

Accept neither A nor B

Reject A, accept B

Accept A, reject B

Accept both A and B