Ingemar plc is an airport operator, and its Board is considering upgrading the facilities that the company provides to passengers. Specifically, there are two possible projects under consideration, forecast details of which are as follows:

		Project X	Project Y
	Year	m	m
	0	(8.400)	(9.200)
	1	6.900	4.400
	2	1.200	4.700
	3	0.700	4.900
	4	Nil	5.200

Note that the estimated cash flows are expressed in real terms, that is to say, in terms of their purchasing power at year 0. Ingemar plc projects are required to make a money rate of return of 15%. Inflation currently stands at 10% and is not expected to change significantly over the next five years.

Required:

Carefully explaining and justifying your approach, make an appraisal of the viability of both projects using the net present value criterion.