You are considering the following two mutually exclusive projects.

You are considering the following two mutually exclusive projects. Project A Year Cash Flow 0 -$87,000 1 $31,000 2 $37,000 3 $44,000 Required rate of return 12 percent Required payback period Project B Year Cash Flow 0 -$85,000 1 $15,000 2 $20,000 3 $90,000 14 percent 2.5 years 2.5 years What is the optimal investment decision? A. B. C. reject Project A and accept Project B. accept Project A and reject Project B. accept both Projects A and B. reject both Projects A and B. The optimal decision should be made using the discounted payback method. D. E