Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 8 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and three years, respectively.

Time0123

Proj A Cash Flow-20,00010,00030,0001,000

Proj B Cash Flow-30,00010,00020,00050,000

Calculate the NPV and use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected and why?