1 1. (20%) ABC company has the following two mutually exclusive projects. Year Project A Project B 0 -10,000 -12,000 6,500 8,000 2 4,000 4,100 3 2,000 5,000 a) Suppose that ABC company's CEO decide their payback period cutoff is one and a half years. What are the payback periods for the two projects (use linear interpolation method to calculate the time within a year)? Which project will the CEO choose according to the payback rule? (Hint: no need to discount the cash flow) b) Suppose that ABC company uses NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 12%