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-30,000 20,000 40,000 11,000

Project B Cash Flow-40,000 20,000 30,000 60,000

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