King, Inc. has the following mutually exclusive projects available. The company has historically used a 4-year cut-off for projects. The required return is 11 percent.

Year	Cash Flow (Project X)	Cash Flow (Project Y)
0	-$82,000	-$125,000
1	15,700	38,600
2	18,300	33,400
3	23,900	31,200
4	26,200	27,500
5	32,100	24,000

(a)	Calculate the Payback period of both projects.	(4 marks)
(b)	State two advantages and two disadvantages of Payback period rule?	(4 marks)
(c)	Calculate the IRR of both projects.	(2 marks)
(d)	Under what circumstances IRR may generate wrong decision? Why?	(4 marks)
(e)	Calculate the NPV of both projects.	(2 marks)
(f)	Which project should you accept and what is the best reason for that decision?	(4 marks)