We are evaluating two mutually exclusive projects. Project A has an initial investment of $30,000 and produces cash inflows of $25,000, $35,000, and $30,000 for Years 1 through 3, respectively. Project B has an initial investment of $35,000 and produces cash inflows of $40,000, $30,000 and $10,000 for Years 1 through 3, respectively. The required rate of return is 12 percent per year for Project A and 15 percent per year for Project B. Which project(s) should be accepted and why?