CAPITAL BUDGETING CRITERIA You must analyze two projects, X and Y. Each project costs $10,000, and the firms WACC is 12%. The expected net cash flows are as follows:

	0	1	2	3	4
Project X	-$10,000	$6,500	$3,000	$3,000	$1,000
Project Y	-$10,000	$3,500	$3,500	$3,500	$3,500

1. Calculate each projects NPV and IRR.
2. Which project(s) should be accepted if they are independent?
3. Which project(s) should be accepted if they are mutually exclusive?

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