Allen Ltd has provided the following figures for two investment projects, only one of which may be chosen Project X Project Y Initial outlay 80,000 80,000 Incremental Profit for Year 1 2 3 4 24,000 36,000 36.000 10,000 18,000 30,000 32,000 32,000 25,000 25,000 Estimated resale value at end of year 4 The business has a cost of capital of 3%. Required: a) Calculate for each project: (1) Payback period. (ii) Net present value (NPV). (20 marks)