Labeau Products, Ltd., of Perth, Australia, has $20,000 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	$	20,000	$	20,000
Annual cash inflows	$	6,000
Single cash inflow at the end of 6 years			$	40,000
Life of the project	6 years		6 years

The companys discount rate is 16%.

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.

Required:

3. Which project would you recommend the company accept?