Assume that you are the chief financial officer 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 $10,000, and the cost of capital for each project is 12 percent. The projects' expected net cash flows are:

Year	Project X	Project Y
0	($10,000)	$10,000)
1	6,500	3,000
2	3,000	3,000
3	3,000	3,000
4	1,000	3,000

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

Which project (or projects) is financially acceptable? Explain your answer.