Question 2 A firm is considering two projects X and Y. The initial outlay for each project is as follows: Project X $100 000.00 ProjectY $160 000.00 The firm's required rate of return is 14%. The after tax cash flow for the two projects are: Year Project X Project Y 30 000 50 000 20 000 40 000 10 000 50 000 10 000 20 000 30 000 20 000 20 000 50 000 a. Calculate for each project: i. payback period ii. net present value (6 marks) (10 marks) (4 marks) iii. profitability index iv. IRR (10 marks) b. Based on your calculations above, which project should be accepted if the projects are mutually exclusive and why