Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:

The company's discount rate is 18%.
Required:
1. Compute the net present value of Project X.
2. Compute the net present value of Project Y.
3. Which project would you recommend the company accept?

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Invest in Project X $35,000 $12,000 Invest in Project Y $35,000 Investment required Annual cash inflows Single cash inflow at the end of 6 years $90,000 6 years 6 years