A company has $350,000 to invest in either Project X or Project Y. The cash flows are as follows:

Year	Project X	Project Y
1	$100,000	$40,000
2	$100,000	$60,000
3	$100,000	$130,000
4	$100,000	$170,000
5	$100,000	$90,000

The discount rate is 8%.

Required:

1. For each project, calculate the:
   • Simple payback period
   • Discounted payback period
   • Net present value
   • Internal rate of return
2. Prepare a comparative income statement for both projects over the five years.
3. Advise the firm on which project to select based on the results of your calculations.