XYZ Ltd. is considering two mutually exclusive projects. The details are as follows:

	Project X	Project Y
Cost of Capital	11%	12%
Initial Investment	$150,000	$200,000
Cash Inflow Year 1	$55,000	$75,000
Cash Inflow Year 2	$65,000	$85,000
Cash Inflow Year 3	$75,000	$95,000

Requirements:

1. Calculate the accounting rate of return (ARR) for each project.
2. Determine the discounted payback period for each project.
3. Compute the NPV of each project.
4. Calculate the IRR for each project.
5. Make a recommendation based on the financial analysis.