Question: 7. P Ltd. is considering two mutually exclusive projects X and Y. following details are available to you: (` in lakhs) Particulars Project X (`)

7. P Ltd. is considering two mutually exclusive projects X and Y. following details are available to you: (` in lakhs)

Particulars Project X (`) Project Y (`)

Initial Investment Cash Inflows:

Year 1 Year 2 Year 3 Year 4 Year 5 1,400 200 400 600 900 1,200 1,400 1,000 800 400 200 200 Assume no residual value at the end of fifth year. Calculate IRR of the projects and advise the management on the project to be selected.

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