4 has asked you to analyze two proposed capital investments-Project X 5 and Project Y. Each project requires a net investment outlay of $35,000, 6 and the cost of capital for each project is 7 percent. The expected net 7 cash flows for each project are as follow: \begin{tabular}{|c|c|c|c|} \hline 8 & & & \\ \hline 9 & Year & Project X & Project Y \\ \hline 10 & 1 & 8,000 & 18,000 \\ \hline 11 & 2 & 8,000 & 12,500 \\ \hline 12 & 3 & 8,000 & 8,000 \\ \hline 13 & 4 & 8,000 & 5,000 \\ \hline 14 & 5 & 8,000 & 4,000 \\ \hline 15 & & & \\ \hline \end{tabular} a. Calculate each project's payback period, net present value (NPV), and internal rate of return (IRR). 17 18 Payback Period 19 NPV IRR b. Which project(s) is/are financially acceptable? Explain your answer. 23