Calculate for each project the net present value. Please show your workings. [10 marks]

QUESTION 1 A company has N$200 000 to be invested on either project X or project Y with the following cash flows: Year Project X Project Y 1 N$70 000 N$10 000 2 N$70 000 N$30 000 3 N$70 000 NS$60 000 4 N$70 000 N$132 000 5 N$70 000 N$40 000 The current cost of capital is 12% Required a) Calculate for each project the: i. Simple payback period [6 marks]