Company ABC has the following mutually exclusive projects:

a$)$ Suppose ABC $\text{'}$s payback period cutoff is two years. Which of these two projects should be

chosen? $(0\mathrm{.}25$ pts$)$

b$)$ Suppose ABC uses the NPV rule to rank these two projects. Which project should be

chosen if the appropriate discount rate is $15$ percent? $(0\mathrm{.}25$ pts$)$