1. Wilsons Market is considering two mutually exclusive projects. The required rate of return is 14% for Project A and 12% for Project B. Project A has an initial cost of $50000, and should produce cash inflows of $16000, $29000, and $35000 for Years 1 to 3, respectively. Project B has an initial cost of $70000, and should produce cash inflows of $0, $50000, and $45000, for Years 1 to 3, respectively. Based on the IRR, (1) which project, if either, should be accepted? Based on the Payback Period, which project should be accepted if the companys PayBack cutoff point is 2.6 years.