Year	Project A (upgrade existing B-Wings)	Project B (develop new X-Wings)
0	-$250,000	-$400,000
1	$100,000	$50,000
2	$80,000	$70,000
3	$60,000	$80,000
4	$40,000	$120,000
5	$20,000	$200,000

The above are two mutually exclusive investment projects for Rebel Alliance. The Alliance requires getting their invested amount fully paid back within 5 years. The Alliances cost of capital (i.e., the required return on investment) is 6% annually.

Based on the NPV rule, what project(s) should the Alliance accept?

a.Project A only.

b.Project B only.

c.Both Projects A and B.

d.Neither Project A or B.