Question 3 Bolivia Ltd is evaluating 2 projects which provide the following cash flows. The firm's cost of capital is 9% per annum. Project X $25,000 Project Y $25,000 Initial Investment End of Year 1 2 3 4 Cash Inflows $8,500 $5,000 $8,500 $8,000 $8,500 $10,000 $8,500 $11,000 Assuming that the 2 projects are mutually exclusive: i) Calculate the payback period for both projects. Which project is acceptable assuming that the maximum cut-off period for the firm is 3 years? Why? Show your workings to 2 decimal places. ii) Calculate the net present value (NPV) of the 2 projects. Which project is acceptable? Why