Market Inc. is considering Projects X and Y, whose cash flows are shown below. They are asking for your advice. These projects are mutually exclusive, equally risky, and not repeatable. The CEO and CFO are at odds about which method to go with and advocate other methods. Calculate and discuss the following and make a recommendation.

WACC: 7.00% Year 0 1 2 3 4 CFx $1,100 $550 $600 $100 $100 CFy $2,750 $725 $725 $800 $1,400

a. NPV and IRR of the chosen project(s). b. What is the Payback period? c. What is the Profitability index? d. Discuss your results of these methods and make a recommendation on the projects to the CEO about which project to go for and why?

*if using excel please show formulas used to get calculations so I can understand where the numbers came from. Thank you!!!! *