Nico Manufacturing is considering investment in one of two mutually exclusive projects X and Y which are described below. Nico Manufacturing's overall cost of capital is 15 percent, the market return is 15 percent and the risk-free rate is 5 percent. Nico estimates that the beta for project X is 1.20 and the beta for project Y is 1.40

Project X

Initial Investment = $3,500,000

Cash Inflows

year 1 $1,500,000

year 2 $1,500,000

year 3 $1,500,000

year 4 $1,500,000

Project Y

Initial Investment = $3,900,000

Cash Inflows

year 1 $1,100,000

year 2 $1,600,000

year 3 $1,900,000

year 4 $2,300,000

***Calculate the NPV of projects X and Y assuming the firm used the overall cost of capital to evaluate projects X and Y

Please show all work and steps