ozina Industries is in the process of choosing the better of two equal risk , mutually project are shown in the following table . The firm's cost of capital is 16 % exclusive capital expenditure projects X and Y. The relevant cash flows for each Question One

lozina Industries is in the process of choosing the better of two equal-risk, mutually project are shown in the following table. The firm's cost of capital is 1696 exclusive capital expenditure projects X and Y. The relevant cash flows for each Question One: (10 marks) Initial investment (CFO) Year (0) 1 2 3 4 5 Project x Project Y $50) $60 Cash inflows (CF) $10- 55 20.- 10. 70 20 50 50 10 70 -25 a. Calculate each Project's payback period. b. Calculate the net present value (NPV) for each Project. aestion Two: (10