Below are cash flows of the two mutually exclusive projects. The required rate of return is 11%.

Year 0 1 2 3 4

Project X -455,000 58,000 85,000 85,000 572,000

Project Y -65,000 31,000 28,000 25,500 19,000

1. Calculate the crossover rate.
2. Calculate NPV, IRR, Payback Period, Discounted Payback Period and Profitability Index for each project.
3. State your decision based on each decision criteria.
4. Which project will you finally choose?