Labeau Products, Limited, of Perth, Australia, has $25,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Project X Invest in Project Y Investment required $ 25,000 $ 25,000 Annual cash inflows $ 8,000 Single cash inflow at the end of 6 years $ 60,000 Life of the project 6 years 6 years The companys discount rate is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.

Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept?