EZ Electronics Inc. is considering two projects: Project A and Project B.

Project A Cash Flow ($):

• Year 0: -$90,000
• Year 1: $15,000
• Year 2: $25,000
• Year 3: $70,000
• Year 4: $50,000

Project B Cash Flow ($):

• Year 0: -$120,000
• Year 1: $40,000
• Year 2: $60,000
• Year 3: $10,000
• Year 4: $70,000

The discount rate for Project A is 8%, and for Project B, it is 11%.

1. Calculate the payback period for each project.
2. Determine which project should be accepted if the company requires a payback period of 3 years.
3. Calculate the profitability index for each project.
4. Identify which project should be accepted based on the profitability index.
5. Calculate the NPV for each project and determine which project should be accepted based on the NPV.