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  3. falcon tire company (ftc) has two projects with th

Falcon Tire Company (FTC) has two projects with the following cash flows: Year0YYear 3 Project...

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Falcon Tire Company (FTC) has two projects with the following cash flows: Year0YYear 3 Project A: ($10,000) $1,000 $6,000 $8,000 Project B: ($10,000) $7,000 $5,000 $2,000 The cost of capital for both projects is 7%. If FTC requires a 2-year cut-off payback period for any project, what decision will the company make using the payback period rule? O Accept A and reject B O No decision can be made with the above information. O Accept B and reject A O Reject both projects O Accept both projects

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