You are considering the following two mutually exclusive projects. The required rate of return is 14.6 percent for project A and 13.8 percent for project B. Which project should you accept and why?

Year Project A Project B

0 -$50,000 -$45,000

1 24,800 41,000

2 36,200 20,000

3 21,000 12,000

	1.	project A; because it has the higher required rate of return
	2.	project B; because it has the lower required return
	3.	project A; because it has the largest total cash inflow
	4.	project B; because it has the largest cash inflow in year one
	5.	project B; because its NPV is more than the NPV of project A