You are considering the following mutually exclusive projects. Both projects will be depreciated using straight line depreciation to a zero book value over the life of the project. Neither project has any salvage value.

Year	Project A	Year	Project B
0	$ - 75,000	0	$-70,000
1	19,000	1	10,000
2	48,000	2	16,000
3	12,000	3	72,000
Required Rate of Return	10%		13%
Required Payback Period	2 years		2 years
Required Accounting Return	8%		11%

1. Based on the net present value method of analysis, which project should you accept? Provide Proof.

2. Based on the on the internal rate of return analysis, which project should you accept? Provide Proof.