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A company is considering two investment projects, Project X and Project Y. Project X requires an initial investment of $200,000 and is expected to generate

A company is considering two investment projects, Project X and Project Y. Project X requires an initial investment of $200,000 and is expected to generate cash flows of $80,000 in Year 1, $100,000 in Year 2, and $120,000 in Year 3. Project Y requires an initial investment of $150,000 and is expected to generate cash flows of $70,000 in Year 1, $80,000 in Year 2, and $90,000 in Year 3. The company's cost of capital is 10%. Calculate the following:

  1. The net present value (NPV) of Project X
  2. The net present value (NPV) of Project Y
  3. The internal rate of return (IRR) of Project X
  4. The internal rate of return (IRR) of Project Y

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