A firm whose cost of capital is 10% is considering two mutually exclusive projects X and Y, the

details of which are:

Year Project X Project Y

Cost 0 70 000 70 000

Cash inflows 1 10 000 50 000

2 20 000 40 000

3 30 000 20 000

4 45 000 10 000

5 60 000 10 000

Calculate the following:

Net Present Value at 10% for both projects

Profitability Index for both projects

Internal Rate of Return of the two projects