You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.

Project A

Year	Cash Flow
0	-$75,000
1	$19,000
2	$48,000
3	$12,000

Project B

Year	Cash Flow
0	-$70,000
1	$10,000
2	$16,000
3	$72, 000

Required rate of return 10% 13% Required payback period 2.0 years 2.0 years

Based on the net present value method of analysis and given the information in the problem, you should:

A. accept both project A and project B.

B. accept project A and reject project B.

C. accept project B and reject project A.

D. reject both project A and project B.

E. accept whichever one you want as they represent equal opportunities.