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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 10 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. O 3 1 17,000 2 37,000 -27,000 8.000 Time: Project A Cash Flow Project B Cash Flow -37,000 17,000 27,000 57,000 Use the NPV decision rule to evaluate these projects; which one(s) should it be accepted or rejected? Multiple Choice accept both A and B reject A, accept B accept A reject B accept neither A nor B

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