Alex is a credit manager at XYZ Bank. He is reviewing the credit risk of two projects, X and Y, whose costs and cash flows are shown below:

Time	X	Y
0	-$2,000	-$2,000
1	200	2,000
2	600	200
3	800	100
4	1,400	75

a. What is the payback period for Project X and Y? Which one has less credit risk and why?

b.What is the Accounting Rate of Return for projects X and Y? Which one has less credit risk and why?

c. If the required rate of return on these projects is 10 percent, what are the NPV for Project X and Y? Which one has less credit risk and why?

d. What is the IRR of both projects? Which one has less credit risk and why?