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 $11$ percent, and that the maximum allowable payback and discounted payback statistic for the projects is $2$ years for both.

Time: $0123$

Project A Cash Flow $-33,00023,00043,00014,000$

Project B Cash Flow $-49,00023,00033,00063,000$

Use the discounted payback decision rule to evaluate these projects; which one$($s$)$ should it be accepted or rejected?

Multiple Choice

reject A$,$ accept B

accept A$,$ reject B

accept both A and B

accept neither A nor B