ABC Company is considering the following two investment oportunities:
Project Name	X	Y
Cost of equipment:	$75,000	35,000
Annual savings from operations:	$25,000	14,500
Life of equipment (years)	5	5
Salvage value of equipment:	$20,000	10,000
Required working capital invested into project:	5,000	15,000
Required rate of return of business	20%
The invested working capital for each project will be returned to the business
when it is sold.
Considerations:
A) Calculate the net present value of each project
Based only on net present value, which project do you recommend?				26	marks
B) Calculate the profitability index of each project to the third decimal place (thousanths)
Based only on profitabilty index, which project do you recommend and why?				16	marks
C) Calculate the payback period of each project				22	marks
Based only on payback period, which project do you recommend?
D) Based on a combination of considerations A) to C), and a survey to employees indicates their first choice is
Project Y due to it being more interesting work which project do you recommend and why?
Answer in less than 100 words or three to five sentences maximum.				22	marks