Please DO NOT round any intermediate calculations. Please show at least 2 decimal points for dollar amounts and at least 4 significant digits for rates.

Question 1 Project X requires $450,000 initial investment and generates cash flow of $62,400 per year forever. Project Y requires $330,000 initial investment and generate first year cash flow of $28,000. The cash flow then grows at 5% per year forever. Both projects have a required return of 12%. a) Calculate their NPV. b) Calculate their IRR. c) Calculate their payback period. (Hint: use growing annuity formula with discount rate =0% for project Y ) d) Calculate their discounted payback period. (Hint: use annuity and growing annuity formulas for projects X and Y respectively) e) Calculate their profitability index