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 it be accepted or rejected?

a. reject A, accept B

b. accept neither A or B

c. accept A, reject B

d. accept both A and B