Micon is considering purchasing two mutually exclusive projects, X and Y, whose costs and cash flows are shown in the following in the table below. The projects are equally risky, and their required rate of return 10%.

Year	Project X	Project Y
0	($10,000)	($16,000)
1	5,000	6,000
2	4,000	6,000
3	3,000	6,000
4	2,000	6,000

1. Find the Payback Period for both and Y projects
2. Find the NPV for both and Y projects
3. Which project should Micon choose?

d) what does it mean to have a positive or negative NPV? (what is the logic of NPV)