A company is considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Project A Project B Year Cash Flow Year Cash Flow 0 -$87,000 0 $85,000 1 $31,000 1 $15,000 2 $37,000 2 $20,000 3 $44,000 3 $90,000 Required rate of return 12 percent 14 percent Required payback period 2.5 years 2.5 years Required accounting return 10 percent 11 percent B1(a) Should the company accept or reject these projects based on NPV analysis? (6 marks) Bl(b) Should the company accept or reject these projects based on payback analysis? (6 marks) B1(c) If NPV analysis and payback analysis offer conflicting answers, which one should the company follow and why