A company is comparing two projects with different cash flow patterns:

Project X:

• Initial Investment: $3,500
• Year 1: $1,500
• Year 2: $1,500
• Year 3: $1,500

Project Y:

• Initial Investment: $3,500
• Year 1: $1,000
• Year 2: $1,000
• Year 3: $1,000
• Year 4: $1,000
• Year 5: $1,000

With a discount rate of 7%, calculate:

a. Net present value (NPV) for both projects. b. Internal rate of return (IRR) for both projects. c. Determine which project should be undertaken.