PLEASE USE EXCEL

A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows:

If the firm in Table has a required payback of 2 years, it should:

A) accept projects A and B.

B) accept project A and reject B.

C) reject project A and accept B.

D) reject both.

Show all your calculations.

Project A Initial End-of-Year Investment Cash Flows $40,000 $20,000 20,000 20,000 Project B Initial End-of-Year Investment Cash Flows $90,000 $40,000 40,000 80,000