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 Project B

Year Cash Flow Year Cash Flow

$0-$$$75,0000-$$$70,000$

$1$ $$19,0001$ $$10,000$

$2$ $$48,0002$ $$16,000$

$3$ $$12,0003$ $$72,000$

Required rate of return $10$ percent $13$ percent

Required payback period $2\mathrm{.}0$ years $2\mathrm{.}0$ years

Required accounting return $8$ percent $11$ percent

Based upon the average accounting return $($AAR$)$ and the information provided in the problem, you: