You are considering two mutually exclusive projects. Both projects have an initial cost of

$52,000. Project A produces cash inflows of $25,300, $37,100, and $22,000 for years 1 through 3,

respectively. Project B produces cash inflows of $43,600, $19,800 and $10,400 for years 1 through 3,

respectively. The required rate of return is 14.2 percent for Project A and 13.9 percent for Project B.

Which project should you accept and why?

A.

Project A; because it has the higher required rate of return.

B.

Project A; because it has the larger NPV.

C.

Project B; because it has the largest cash inflow in year 1.

D.

Project B; because it has the lower required rate of

return.

E.

Project B; because it has the larger NPV

Please explain how to figure this out on a TI84 calculator