CHAPTER 14: CAPITAL BUDGETING Homework Problem 4.7 Assume that you are the COO at Cactus Valley Medical Center. The CEO has asked you to analyze two proposed capital investments-Project X and ProjectY. Each project requires a net investment outlay of $10,000, and the cost of capital for each project is 12 percent. The expected net cash flows for each project are as follow: Project Y 3,000 Year 1 2 3 ProjectX 6,500 3,000 3,000 1,000 3,000 3,000 3,000 a. Calculate each project's payback period, net present value (NPV), and internal rate ofreturn (IRR). Project X Project Y PB period NPV IRR b. Which project(s) is/are financially acceptable? Explain your