b) BPM Ltd. has the following capital structure: 40% debt and 60% equity. The cost of equity is 16%. Its before tax cost of debt is 8%, and its corporate tax rate is 40%. BPM is considering between two mutually exclusive projects that have the following cash flows:

Which project should BPM choose? (7 marks)

\\begin{tabular}{|c|c|c|c|c|} \\hline & Today & Year \\( \\mathbf{1} \\) & Year \\( \\mathbf{2} \\) & Year \\( \\mathbf{3} \\) \\\\ \\hline Project \\( \\mathrm{X} \\) & Cost \\( =100 \\) million & +50 million & +30 million & +50 million \\\\ \\hline Project \\( Y \\) & Cost \\( =150 \\) million & +50 million & +60 million & +80 million \\\\ \\hline \\end{tabular}