Q3. A company is considering which of two mutually exclusive projects it should undertake. The finance director thinks that the project with higher NPV should be chosen as both the projects have the same initial outlay and length of life. The company anticipates a cost of capital of 10% and the net after tax cash flows of the project are as follows: (Rs '000) Year 0 2 3 5 Project X -210 80 90 75 25 1 2. 3 4 40 Project Y -210 222 10 10 6 6 6 Compute: (i) The NPV and Pl of each project. (ii) State with reasons which project you would recommend