A business is evaluating two mutually exclusive projects with the following cash flows. Calculate the NPV and IRR for each project and determine which project should be selected. Use a discount rate of 10%.

Project X:

• Initial Cost: $500,000
• Year 1: $120,000
• Year 2: $130,000
• Year 3: $140,000
• Year 4: $150,000
• Year 5: $160,000

Project Y:

• Initial Cost: $600,000
• Year 1: $150,000
• Year 2: $160,000
• Year 3: $170,000
• Year 4: $180,000
• Year 5: $190,000

Requirements:

1. Calculate the NPV for both projects.
2. Calculate the IRR for both projects.
3. Decide which project to select based on NPV and IRR.