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 -$50,000

1 24,800 41,000

2 36,200 20,000

3 21,000 10,000

A. project A; because it has the higher required rate of return B. project A; because its NPV is about $4,900 more than the NPV of project B C. project B; because it has the largest total cash inflow D. project B; because it has the largest cash inflow in year one E. project B; because it has the lower required return