Enter your answers into the box below. Make sure you label your answers using 1, 2,..., etc.

XYZ Co has two investments X and Y. Investment X has an initial capital outlay of $500 million, and the investment is expected to generate $1200 million in nine years. Investment Y has an initial capital outlay of $200 million, and the investment is expected to generate $450 million in nine years. Assume XYZ has a cost of capital of 10%.

1. Determine the internal rate of return of Investment X and Investment Y. Should X and Y be taken?

2. Determine the net present value of Investment X and Investment Y. Should X and Y be taken?