Based on the following costs and cashflows of Project X and Project Y, calculate their NPVs, IRRs, and PIs. State if the projects are acceptable under each method and why.

State which project is best overall and why. The firms cost of capital is 13%.

Project X Project Y

Cost = $310,000 Cost = $123,000

Year Cashflow Year Cashflow

1 $75,000 1 $42,000

2 $60,000 2 $25,000

3 $85,000 3 $43,000

4 $105,000 4 $2,700

5 $140,000 5 $80,000