F9 1 X fx A B C D E H 33 34 35 PROBLEM 3 36 Assume that you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze two proposed 37 capital investments - project X and project Y. Each project requires a set investmeat outlay of S25.000, 38 and the cost of capital for each project is 7.5 percent. The projects' expected set cash flows are as follows: 39 40 Year Project X Project Y X Cumulative Y Cumulative Rate 41 OS (25,000) S (25,000) 42 1 S 13.500 S 7.250 43 2 S 9.500 5 7.250 44 3 56,000 7.250 45 45 3.000 S 7,250 46 47. Calculate each project's payback period, art present value (NPV), and the lateral rate of retur (IRR). 48 49 50 b. Which project is financially acceptable? Explain your uswer. 51 52 53 54