Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required

rate of return on projects of both of their risk class is $12$ percent, and that the maximum allowable payback and

discounted payback statistic for the projects are $2$ and $3$ years, respectively.

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

Multiple Choice

Accept A$,$ reject B

Accept neither A nor B

Reject A$,$ accept B

Accept both A and B