[Solved] Suppose your firm is considering two mutually exclusive,required projects with the cash flows shown as follows.The required rate of return on projects of both of their risk class is 10 percent,and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three and a half years,respectively. Use the PI decision rule to evaluate these projects; which one(s)should be accepted or rejected? A) Accept both A and B B) Accept neither A nor B C) Accept A, reject B D) Reject A, accept B Convertible Bonds: Debt securities that offer the holder the right to exchange them for a fixed number of shares of the issuing company, usually at a specified time. Naked Put: An options strategy where the investor sells put options without holding the underlying security, exposing them to potentially unlimited losses. Expected Dollar Profit: The forecasted amount of money that an investment is likely to earn in dollars. Major Drop: A significant decline in the price or value of an asset or stock within a short period of time.