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Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown...

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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: Project A Cash Flow Project B Cash Flow 0 1 2 3 -35,000 25,000 45,000 16,000 -45,000 25,000 35,000 65,000 Use the Pl decision rule to evaluate these projects; which one(s) should it be accepted or rejected? Multiple Choice accept A, reject B reject A, accept B accept neither A nor B accept both A and B

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