1. Consider the following two mutually exclusive projects (X and Y) available to you: Year Cash Flow (X) Cash Flow (Y) 0 -$ 170,000 - $ 136,000 1 112,000 26,000 2 66,000 56,000 3 26,000 96,000 IRR 12.48% 12.07% Whichever project you choose, if any, you require a 10 percent return on your investment. a. Calculate the payback period for each project. (6 marks) b. Calculate the net present value (NPV) of each project (6 marks) c. Based on your calculated answers above about Payback Period, NPV as well as the given IRR, which project will you finally choose? Why