Example $15.$ Capital Budgeting Decision Using Net Present Value $($NPV$)$

Question: Beacon Corporation is considering two investment projects. Project X requires an initial investment of $$200,000$ and is expected to generate cash inflows of $$60,000$ per year for $5$ years. Project Y requires an initial investment of $$150,000$ and is expected to generate cash inflows of $$50,000$ per year for $5$ years. The company$$s cost of capital is $8\%.$ Calculate the NPV for each project and determine which project should be accepted. Provide detailed calculations and explanations.