The Square Box Is Considering Two Independent Projects with an Initial

Multiple Choice

The Square Box is considering two independent projects with an initial cost of $18,000 each. The cash inflows of Project A are $3,000, $7,000, and $10,000 for Years 1 to 3, respectively. The cash inflows for Project B are $3,000, $7,000, and $15,000 for Years 1 to 3, respectively. The required return is 12 percent and the required discounted payback period is 3 years. Based on discounted payback, which project(s) , if either, should be accepted?

A) Both projects should be accepted.
B) Both projects should be rejected.
C) Project A should be accepted and Project B should be rejected.
D) Project A should be rejected and Project B should be accepted.
E) You should be indifferent to accepting either or both projects.