Hittle Company is considering two mutually exclusive projects X and Y. The cost of capital for each project is 10%. The projects expected net cash flows are as follows:

Year Project X Project Y

0 -$10,000 -$10,000

1 4,500 3,500

2 3,000 3,500

3 3,000 3500

4 3000 3500

5 3600 3500

What are the correct NPVs of projects X and Y, respectively?

	1.	$3000.50 (X), $3100 (Y)
	2.	$3108.55 (X), $3267.75 (Y)
	3.	$7100 (X), $7500(Y)
	4.	$3267.75 (X), $3108.55 (Y)