You are considering two mutually exclusive projects. Both projects have an initial cost of $64,000. Project A produces cash inflows of $27,400, $36,200, and $28,000 for years 1 through 3, respectively. Project B produces cash inflows of $47,100, $16,500 and $12,300 for years 1 through 3, respectively. The required rate of return is 12.1 percent for Project A and 8.9 percent for Project B. Which project should you accept and why? Project B; because it has the larger NPV Project B; because it has the lower required rate of return Project B; because it has the largest cashflow in year 1 Project A; because it has the higher required rate of return Project A; because it has the larger NPV