For questions one through four, consider the following two projects. Assume they are not mutually exclusive projects, which means that you could possibly invest in both. Regardless of the decision rule used, your required rate of return for both of these projects is 15%.

Year	Project A Cash Flows	Project B Cash Flows
0	-$350,000	-$50,000
1	45,000	24,000
2	65,000	22,000
3	65,000	19,500
4	440,000	14,600

If you have a discounted payback cutoff date of three years, then which of these projects, if any, would you accept?

Project A only

Project B only

both Project A and Project B

neither Project A nor Project B