Question: 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

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 9 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively.
Time: 0 1 2 3
Project A Cash Flow -26,000 16,000 36,000 7,000
Project B Cash Flow -36,000 16,000 26,000 56,000
Use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected?

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