Manager Cafe "Daiton" is considering investing in 2 (two) projects. Project X is an investment of $ 75,000 to replace its refrigeration equipment works but outdated / outdated. Project Y is an investment of $ 1,500,000 expand the dining room facilities. Cash flow data is relevant for both projects for 2 years are expected to be as follows: a. Compute: Expected value, standard deviation, and coefficient of variation for cash flows of each project. b. Calculate: Risk-adjusted NPV for each project using cost of capital 15% for riskier projects, and cost of capital 12% for less risky projects. Which project is more profitable with using the NPV criteria? c. Calculate: PI for each project, and rank the projects according to the criteria PI. d. Compute: IRR for each project, and rank projects accordingly IRR criteria. e. Compare your answers to b, c, and d, and discuss any differences.

Project X Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.16 $0 0.08 $0 0.66 50000 0.82 50000 0.18 100000 0.10 100000 Project Y Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.50 $0 0.13 $0 0.50 200000 0.74 100000 0.13 200000