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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 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. 0 Time 1 2 3 Project A Cash Flow -35,000 25,000 45,000 16,000 Project B Cash Flow - 45,000 25,000 35,000 65,000 Use the NPV decision rule to evaluate these projects, which one(s) should be accepted or rejected? Multiple Choice Accept both A ond Reject A, accept Accept A reject Multiple Choice Accept both A and B Reject A, accept B Accept A, reject B Accept neither A nor B

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