HFT 4464 Dr.Lan Homework # 5 1. An independent capital budgeting project is expected to have the following cash flows at a 10% required rate of return. Year CashFlows 0 -500,000 1 90,000 2 140,000 3 210,000 4 300,000 aCompute the NPV (Round to S1) Compute the PI (Round to 2 decimal places) Compute the IRR (Round to 1 decimal places) d Compute the DPP (Round to 1 decimal places) Should the project be accepted? Explain your answer 2 The following table shows the cash flows for two mutually exclusive capital budgeting projects. The required rate of return for both projects is 13%. Year Project X Project Y 0 200000 200000 1 100000 60000 2 60000 20000 3 100000 200000 aCompute the NPV for both projects b Compute the IRR for both projects c. Which project should you inves, why