Jaime is evaluating two independent projects. Project A costs $$74,600$ and has projected cash flows of $$18,700,$ $$46,300,$ and $$12,200$ for Years $1$ to $3,$ respectively. Project B costs $$70,000$ and has cash flows of $$10,600,$ $$15,800,$ and $$67,900$ for Years $1$ to $3,$ respectively. Jaime assigns a discount rate of $10$ percent to Project A and $12$ percent to Project B$.$ Which project or projects, if either, should he accept based on the profitability index rule?

Multiple Choice

Reject both projects.

Accept Project B and reject Project A$.$

Accept Project A and reject Project B$.$

Accept both projects.

Accept either A or B$,$ but not both.