Labeau Products, Ltd., of Perth, Australia, has $24,000 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	$24,000	$24,000
Annual cash inflows	$8,000
Single cash inflow at the end of 6 years	$44,000
Life of the project	6 years	6 years

The company's discount rate is 14%.

Attached areExhibit 13B-1andExhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:

a.	Determine the net present values.(Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)

	Now	1	2	3	4	5	6
Project X:
Initial investment
Annual cash inflows
Total cash flows
Discount factor (14%)
Present value
Net present Value
Project Y:
Initial investment
Single cash inflows
Total cash flows
Discount factor (14%)
Present value
Net present value

b.	Which alternative would you recommend that the company accept?
	Project X Project Y