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Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, $27,000, and $20,000 for Years 1 through

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Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, $27,000, and $20,000 for Years 1 through 3, respectively. Project B produces cash inflows of $80,000 in Year 2 only. The required rate of return is 10 percent for Project A and 11 percent for Project B. Which project(s) should be accepted and why? A. Project B, because it has the larger NPV. B. Project A, because it has the higher required rate of return. C. Project B, because it has the higher required rate of return. D. Project B, because it has the largest cash inflow in Year 2. O E. Project A, because it has the larger NPV

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