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

● 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 5 700 100 200 300 450 600 700 500 400 200 100 100 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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