1. Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investmentsProject X and Project Y. Each project requires a net investment outlay of $10,000, and the cost of capital for each project is 12 percent.

The projects expected net cash flows are:

Year	Project X	Project Y
0	($10,000)	($10,000)
1	5,500	3,000
2	3,000	3,000
3	3,000	3,000
4	2,000	3,000

a. Calculate each projects payback period and net present value.

b. Which project (or projects) is financially acceptable? Explain your answer.