Gripin Corp. is considering two mutually exclusive projects.Both require an initial investment of $50,000, and their risks are average for the firm.Project X has an expected life of 3 years with after-tax cash inflows of $20k, $30k and $20k at the end of Years 1,2 and 3, respectively.Project Y has an expected life of 2 years with after-tax cash inflows of $35k at the end of each of the next 2 years.The firm's WACC is 10%.Use the replacement chain approach to determine the NPV of the most profitable project.

Project XProjectY

YearsCash FlowsYearsCash Flows

0-$50,0000-$50,000

120,000 135,000

230,000 235,000

320,000