A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Table 10.3 Project A Project B Initial investment End-of-year cashflow Initial investment End-of-year cashflow $40,000 $20,000 $90,000 $40,000 20,000 40,000 20,000 80,000 If the firm in Table 10.3 uses the payback period as the decision rule and has a required payback of two years, it should________. If the firm has a required payback of 3 years, which project is a better choice as far as the payback period is concerned? Group of answer choices accept Project A and reject Project B; project A is better

accept Project A and Project B; project A is better

reject both the projects;

project B is better reject Project A and

accept Project B; project B is better