1.If company X was considering 2 separate projects, each with an initial required investment of $350,000 and with anticipated returns as follows, what is the payback of each? Please show how to calculate.

2.If company X was considering 2 separate projects, each with an initial required investment of $350,000 and with anticipated returns as follows, what is the NPV of each? Assume the cost of capital you have already calculated. Please show how to calculate.

Project 1 Project2

Year1=130,000 Year1=110,000

Year2=120,000 Year2=110,000

Year3=100,000 Year3=110,000

Year4=90,000 Year4=110,000

3.Discuss recommendations for each of the projects 1 and 2 in the previous question.

(a) Analyze the projects in terms of the payback period as well as their NPV.

(b) In additional, discuss what your recommendations would be if the projects are independent or if they are mutually exclusive.

(c) Finally, discuss your recommendations if company has unlimited funding or it is exercising capital rationing. Be specific and detailed in your response.