Question: Use NPV method to compare and analyse which Proposal is better to accept. Assume discounting rate is 10%. Project X: Cash Outflow Year 0 20000,

Use NPV method to compare and analyse which Proposal is better to accept. Assume discounting rate is 10%.

Project X: Cash Outflow Year 0 20000, Cash Inflows Year 1 30000, Year 2 20000, Year 3 10000;

Project Y: Cash outflow year 0 20000, Cash inflows year 1 10000, year 2 20000, year 3 30000.

Based on NPV which project should be accepted and why?

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