DEF Company is considering to accept one of the following two projects. The cash flow of the two projects are as follows:

Year

Project X $($RM$)$

Project Y $($RM$)$

$0$

$50,000$

$50,000$

$1$

$15625$

$0$

$2$

$15625$

$0$

$3$

$15625$

$0$

$4$

$15625$

$0$

$5$

$15625$

$100,000$

The company$$s cost of capital is $10$ percent. Calculate and answers to the followings:

$($a$)$ Payback period for both projects.

$($b$)$ Net present value for both projects.

$($c$)$ Profitability Index for project X and Y$.$

$($d$)$ Which project would you choose and state your reasons.