ALRebaat engineering company is manufacturing a consumer product, the demand for which at current price is in excess of its ability to produce. The capacity of a particular machine, now due for replacement, is the limiting factor on production. The possibilities exist either of acquiring a similar machine (Project x) or of purchasing a more expensive machine with greater capacity (Project Y). The cash flows under each alternative have been estimated and given below. The company's opportunity cost of capital is 10%. In deciding between the two alternatives the Managing Director favors the 'pay back method'. The Chief Accountant, however, thinks that a more specific method should be used. Following are the details of the investment options Year Project X Project Y 0 Rs. - 27.000 Rs. - 40,000 1 - 10,000 2 5,000 14,000 3 22,000 16,000 4 14,000 17,000 5 14,000 15,000 1. The Net Present Value 2. The Discounted Pay Back period 3. The profitability Index 4. Internal Rate Of Return