Siegel Industries is considering two capital budgeting projects. Project A requires an initial investment of $48,000. It is expected to produce net annual cash flows of $7,000. Project B requires an initial investment of $75,000 and is expected to produce net annual cash flows of $12,000. Using the cash payback technique to evaluate the two projects, Siegel should accept:

(a) Project A because it has a shorter cash payback period.

(b) Project B because it has a shorter cash payback period.

(c) Project A because it requires a smaller initial investment.

(d) Project B because it produces a larger net annual cash flow.