You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 5 percent? What if the discount rate is 11 percent?

Year Project A Project B 0 -$80,000 -$80,000 1 $26,000 $32,000 2 $30,000 $28,000 3 $34,000 $24,000

accept B at 5 percent and A at 11 percent.

accept project B as it always has the higher NPV.

accept project A as it always has the higher NPV.

accept A at 5 percent and B at 11 percent.

accept A at 5 percent and neither at 11 percent.