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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 12 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 34,000 24,000 44,000 15,000 -44,000 24,000 34.000 64,000 Use the Pl decision rule to evaluate these projects, accept the project with the higher Pl value Murple Choice C ccept Areject O o accept both A and B O ) accept nether Anor B O O reject Accept O

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