Assume that you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investmentsProject X and Project Y. Each project requires a net investment outlay of $25,000, and the cost of capital for each project is 12 percent. The projects expected net cash flows are as follows:

Year	Project X	Project Y
1	12,000	8,000
2	8,000	8,000
3	8,000	8,000
4	5,000	8,000

a. Calculate each project's payback period, net present value (NPV), and internal rate of return (IRR).

b. Which project(s) is/are financially acceptable? Explain your answer.