Baker's Supply Imposes a Payback Cutoff of 3 A)Reject Both Projects a and B
B)Accept Project a but Its

Baker's Supply imposes a payback cutoff of 3.5 years for its international investment projects.If the company has the following two projects available,which project(s) ,if either,should it accept? $$\begin{array} { | r | r | r | } \hline \underline { \text { Year } } & \underline { \text { Cash Flow } } & \underline { \text { Cash } } \\&\text {A}&\text {Flow (B) }\\\hline 0 & - \$ 62,000 & - \$ 26,000 \\\hline 1 & 7,100 & 15,600 \\\hline 2 & 9,800 & 8,400 \\\hline 3 & 28,700 & 1,900 \\\hline 4 & 45,900 & 1,100 \\\hline\end{array}$$

A) Reject both Projects A and B
B) Accept Project A but not Project B
C) Accept Project B but not Project A
D) Both Project A and B are acceptable but you can select only one project
E) Accept both Projects A and B