A and B are mutually exclusive projects. The required rate of return is 10%.

The cutoff period is 2 years.

Year	Project A	Project B
0	-$1,000	-$1,000
1	500	100
2	400	300
3	300	400
4	100	675

If the company applies payback period decision, which project should be recommended?

a Project A because it has payback of 2.33 years.

b. Project A because it has payback of 2.107 years.

c. Project B because it has payback of 2.33 years.

d. Project B because it has payback of 3.30 years.

e. Neither of two projects is recommended.