Question A1 a) The following information relates to two mutually exclusive projects: Project X Project Y Initial cost () 20,000 19,000 Net operating cash flows () Year 1 4.000 5,000 Year 2 10,000 8,000 Year 3 10.000 10,000 Year 4 900 800 Salvage value (E) 100 600 Required: 1) Calculate the payback period for each project. (3 marks) ii) Assuming a discount rate of 10%, calculate the net present value (NPV) for each project (you may assume that salvage value is received at the same time as the last net operating cash flow for each project). (6 marks) ii) Calculate the internal rate of return (IRR) for project X (4 marks)