Question: 27. A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Project A Project B Initial

27. A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Project A Project B Initial End-of-Year Investment Cash Flows $40,000 $20,000 Initial Investment $90,000 End-of-Year Cash Flows $40,000 20,000 40,000 20,000 80,000 If the firm has a required payback of two (2) years, which project(s) should be accepted?

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