Answer this question based on the following information about two mutually exclusive projects:

Project A

year Cash flow

0 -75,000

1. 19,000

2. 48,000

3. 12,000

Project B

Year. Cash flow

0. -70,000

1 10,000

2 16,000

3 72,000

Suppose payback period cutoff for both projects is three years. Based upon the discounted payback period and the information provided in the problem, you should:

Select one:

A. Accept both project A and project B.

B. Accept project B and reject project A.

C. Accept project A and reject project B.

Section B

The required rate of return for project A is 13% and the required rate of return for project B is 10%.

Based on the net present value method of analysis and given the information in the problem, you should:

Select one:

A. Accept both project A and project B.

B. Accept project B and reject project A.

C. Accept project A and reject project B.