Question: An investor facing two mutually exclusive projects having life span of four years each provides you the following particulars. Particulars Proposal X Proposal Y Life

● An investor facing two mutually exclusive projects having life span of four years each provides you the following particulars.

Particulars Proposal X Proposal Y Life of the project (years) 4 4 Initial Investment (`) 1,60,000 48,000 Net Cash Flow (`)

Year 1 56,000 19,600 Year 2 56,000 19,600 Year 3 56,000 19,600 Year 4 56,000 19,600 Rank the two proposals under NPV and IRR method assuming a cost of capital of 10%

p.a. Is there any conflict in ranking? If so, how will you resolve the same?

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