Valley Products, Inc. is considering two independent investments having the following cash flow streams:

Year Project A Project B

$0-$$$35,000-$$$60,000$

$1+15,000+12,000$

$2+30,000+10,000$

$3+10,000+10,000$

$4+5,000+5,000$

$5+5,000+30,000$

Valley uses a combination of the net present value approach and the payback approach to evaluate investment alternatives. It requires that all projects have a positive net present value when cash flows are discounted at $11$ percent and that all projects have a payback no longer than three years. Which project or projects should the firm accept? Use Table II to answer the questions. Round your answers to the nearest whole number.

Project A Project B

Payback

years

years

NPV $

$86435$

$

$107336$

Is the project acceptable?

Not acceptable

Acceptable