You are asked to evaluate the following two projects for the XTREME Corporation, using the net present value method.

a. which project would you select? Use a discount rate of 14 percent.

b. Which project will you select if cost of capital is 24%?

Project X ($20,000 Investment)

Year Cash Flow

1 ..................... $10,000

2 ..................... 8,000

3 ..................... 9,000

4 ..................... 8,600

Project Y ($40,000 Investment)

Year Cash Flow

1 ..................... $20,000

2 ..................... 13,000

3 ..................... 14,000

4 ..................... 16,000

Include financial calculator steps, including the keys pressed on the calculator to solve each step.