Valley Products, Inc. is considering two independent investments having the following cash flow streams:

Year		Project A		Project B
0		-$35,000		-$45,000
1		+10,000		+11,000
2		+25,000		+10,000
3		+15,000		+20,000
4		+7,000		+8,000
5		+8,000		+35,000

Valley uses a combination of the net present value approach and the payback approach to evaluate investment alternatives. It requires that all projects have a positive net present value when cash flows are discounted at 11 percent and that all projects have a payback no longer than three years. Which project or projects should the firm accept? Use Table II to answer the questions. Round your answers to the nearest whole number.

		Project A		Project B
Payback		years		years
NPV		$		$
Is the project acceptable?		-Select-AcceptableNot acceptableItem 5		-Select-AcceptableNot acceptableItem