ANSWER ASAP

subject introduction to business finance

Question 3: (8 Marks) You are a financial analyst for the H Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects X and Y. Each project has a cost of $10,000, and the cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows: Expected Net Cash Flows Year Project X Project Y 0 ($100,000)($100,000) 60,500 40,000 30,000 40,000 30,000 40,000 40,000 1 2 3 4 10,000 Required: a) Calculate each project's payback period, net present value (NPV) and Profitability Index (PI) b) Which project or projects should be accepted if they are independent? c) Which project should be accepted if they are mutually exclusive