Matthews plc has the choice of three mutually exclusive projects, each of which will last three years. Matthews plc has an agreed overdraft of 10,000 at an interest rate of 10%. The estimated cash flows (which accrue equally over the year) are as follows: Year Project X Project Y Project Z E Initial outflow 0 10,000 10,000 10,000 Inflow 1 3,000 5,000 4,000 Inflow 2 4,000 6,000 4,500 Inflow 3 6,000 5,000 4,000 Disposal value 3 500 500 500 Using the payback method, which is the preferred project? Select one: O a. Project z b. Project Y c. Not enough information d. Project X