PART 1 B-CAPITAL BUDGETING The same firm as in Part 1 is considering the investment of two independent projects, X and Y, which are described below. Please do not assume anything. Use a WACC of 15% to evaluate the projects. Cost of Capital>> Year PROJECT X PROJECT Y A. Calculate Payback period for both projects Cash Inflows B. Calculate NPV for both projects Initial Investment ($11,050,000) ($11,250,000) 0 C. Calculate IRR for both projects $3,500,000 $5,500,000 1 D. Calculate MIRR for both projects 2 $3,500,000 $5,800,000 2 E. Which project should the firm accept? Why? 3 $5,800,000 $2,900,000 3 4 $5,800,000 $1,950,000 For the Payback Period Calculation Cash End of Year Balances PROJECT X PROJECT Y Year 1 2 3 Please enter your formulas in the blue cells: A. Payback B. NPV C. IRR D. MIRR E. Accept projects>>> Yes or No Yes or No Why