$\backslash$table$[[$Year$,$Cash Flow$($A$),$Cash Flow$($B$)],[0,-$$$72,000,-$$$30,000],[1,27,000,9,000],[2,32,000,19,500],[3,38,000,13,500]]14.$ The Z$.$S$.$ Corp. is trying to choose between the following two mutually exclusive design projects.

a$.$ If the required return is $10\mathrm{.}5\%$ and the company applies the profitability index decision rules,

which project should the firm accept?

b$.$ If the company applies the NPV decision rules, which project should it take?

c$.$ Explain why your answers in $($a$)$ and $($b$)$ are different?

Answer: