Proposal X and Proposal Y require an initial Investment of $ 10000 and are expected to generate an equal cash inflow of $20000 over their life of four years. The net cash inflow for each year of life of both the proposal is given below:

YEAR	Proposal X ($)	Proposal Y($)
1	2000	8000
2	4000	6000
3	6000	4000
4	8000	2000
Total	20000	20000

Required:

1. Compute the present value of cash inflow generated by both the proposals assuming a discount rate of 18 %.

Which of the two proposal is better if compared using net present value Method?