ABC CO. is considering toe mutually exclusive project with the same cost of capital of 12 %.

The estimated cash flows are as follows

Year	Project X	Project Y
0	-$500	-$450
1	$320	$280
2	$230	$600
3	$500	-150

a) Calculate the payback period for each project

Give your answer in 2 decimal places

b) Discuss two problems of using payback period in capital budgeting decisions in the context of project X and Y

c) Calculate the NPV for eah project.

Explain which project. If any, you would choose using the NPV criterion