Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments Project X and Project Y. Each project requires a net investment outlay of $10,000, and the opportunity cost of capital for each project is 12 percent. The projects expected net cash flows are as follows:

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 projects payback, NPV, and IRR

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