Question: 2. The company must choose between two mutually exclusive projects. The cost of capital is 9%. (Maximum acceptable payback period is 4 years.)The cash flows

2. The company must choose between two mutually exclusive projects. The cost of capital is 9%. (Maximum acceptable payback period is 4 years.)The cash flows are as follows: Project X Project Y Year O 15550.000.550.000 Year I SO 540.000 Year 2 S10,000 $30,000 Year 3 $20,000 $20,000 Year 4 $30.000 Si0.000 Year 5 S40,000 SO Averags $20,000 $20,000 A. Calculate the following: Project Y Project X a. Payback Period: b. NPV: b. IRR: B. Which project would you recommend? Why

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