• GHI Corporation is considering two investment projects, Project X and Project Y. The cash flows for each project are as follows:

  Project X:

  • Initial investment: $800,000
  • Cash flows: $200,000 per year for 5 years

• Project Y:

  • Initial investment: $600,000
  • Cash flows: $150,000 per year for 4 years

• Determine the payback period and profitability index for each project.