Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 8 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and three years, respectively.

Time	0	1	2	3
Project A Cash Flow	20,000	10,000	30,000	1,000
Project B Cash Flow	30,000	10,000	20,000	50,000

Use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected?

• Accept both A and B

• Accept neither A nor B

• Accept A, reject B

• Reject A, accept B