Question: JKL Inc. has to decide between two projects. Project X requires an initial investment of $25,000 and will generate returns of $9,000 annually for four

JKL Inc. has to decide between two projects. Project X requires an initial investment of $25,000 and will generate returns of $9,000 annually for four years. Project Y requires an initial investment of $50,000 and will generate returns of $15,000 annually for four years. Both projects have a discount rate of 8%. Calculate the NPV of each project and provide a recommendation.

Requirements:

Calculate the NPV for Project X.
Calculate the NPV for Project Y.
Provide a recommendation based on the NPVs calculated.

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