Assume you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze 2 proposed capital investments- Project X and Project Y. Each project requires a net investment outlay of $ 10,000, and the oppurtunity cost of capital for each project is 12%. The projects exp[ected net cash flows are as follows.

Year Ptoject 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

a. calculate each project's payback, NPV and IRR.

b. Which project or porjects is financially acceptable. Explain your answer.