You have been asked by MPAC Ltd to analyse two projects, X and Y. Each project costs 1,000,000, and the companys cost of capital is 10 percent per annum. The expected net cash flows are as follows: Year Project X Project Y 1 600,000 200,000 2 500,000 300,000 3 300,000 400,000 4 100,000 675,000 Required: a) Calculate the following for each project: i) net present value ii) modified internal rate of return iii) discounted payback period (15 marks) b) Which project(s) should be accepted if they are independent? Explain why. (2 marks) c) How might a change in the cost of capital produce a conflict between the net present value and internal rate of return rankings of these two projects? Would this conflict exist if the cost of capital were changed? Why does the conflict exist? Discuss critically.