You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and 10.75% for project B. Which project should you accept and why?

Year Project A Project B

0 -48,000 -126,900

1 18,400 69,700

2 31,300 80,900

3 11,700 0

		project A; because its NPV is about $335 more than the NPV of project B
		project A; because it has the higher required rate of return
		project B; because it has the largest total cash inflow
		project B; because it returns all its cash flows within two years