Question 1: Please answer the following questions by using the information given in the table.

Years	0	1	2	3	4	5
Cash Flows	C0	C1	C2	C3	C4	C5
Project X	-9000	6000	4000	4000	0	0
Project Y	-9000	2000	2000	2000	6000	6000

a) Calculate the payback period for each project. Which one would you choose, why?

b) Calculate the NPV of the projects at a discount rate of 5%. Which one would you choose, why?

c) Show how you would calculate the IRR for the project (It is equal to 28% for project X and 22% for project Y). Which project would you choose according to IRR method?

d) Could you please explain why IRR model makes you choose a different project than NPV method? What is your final decision?