A company is evaluating two investment projects, Project X and Project Y. The following information is available:

• Project X:
  • Initial Investment: $1,000,000
  • Cash Inflows: Year 1: $300,000; Year 2: $400,000; Year 3: $500,000
• Project Y:
  • Initial Investment: $800,000
  • Cash Inflows: Year 1: $200,000; Year 2: $300,000; Year 3: $400,000

Requirements:

1. Compute the discounted payback period for both projects using a discount rate of 8%.
2. Calculate the NPV for both projects.
3. Calculate the IRR for both projects.
4. Decide which project to undertake based on the calculations.