Labeau Products, Limited, of Perth, Australia, has $$21,000$ to invest in one of the following two projects:

Project X Project Y

Investment required $ $21,000$ $ $21,000$

Annual cash inflows $ $8,000$

Single cash inflow at the end of $6$ years $ $50,000$

Life of the project $6$ years $6$ years

The company$$s discount rate is $18\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the net present value of Project X$.$

Compute the net present value of Project Y$.$

Which project should the company accept?