2. (SHOW ALL WORK PLEASE) The following cash flows are give for the two mutually exclusive projects X and Y. The project X requires an initial investment of $10,000 in time 0and project Y needs an initial investment of $10,000 in time 0.

Year Project X Project Y 1 $4,500 $8,000

2 6,000 5,000

3 7,500 4.500

4 8,000 3,000

(a) Calculate the NPV for each project using a discount rate of 10%.

(b) State your accept/reject decision

(c) What would be your accept/reject decision if they were to be independent projects?