From the following information, calculate the net present value of the two projects and suggest which of the two projects should be accepted a discount rate of the two

Project X Project Y

Initial Investment 20000 40000

Estimated Life 5 Years 5 Years

Scrap Value 1400 2000

The profits before depreciation and after taxation (cash flows) are as follows:

Year 1 Year 2 Year 3 Year 4 Year 5

Project X 5000 12000 10000 5000 2000

Project Y 20000 14000 5000 7000 2000

Note: The following are the present value factors @ 10% p.a.

Year	1	2	3	4	5	6
Factor	0.909	0.826	0.751	0.683	0.621	0.564