You must analyze two projects, X and Y. Each project costs $10,000 and the firms WACC is 12%. The expected cash flows are as follows:

0-----------------1----------------2---------------3--------------4

$ $ $ $ $

Project X -10,000 6,500 3,000 3,000 1,000

Project Y -10,000 3,500 3,500 3,500 3,500

1. Calculate each projects NPV, IRR, MIRR, Payback and discounted payback.
2. Which project(s) should be accepted if they are independent?
3. Which project(s) should be accepted if they are mutually exclusive?