QUESTION 5 [20 marks) You are presented with the following projections for investment projects 'X' and 'Y'. The required rate of return is 12% and there is no salvage or residual value for both investments. Ignore taxation. Project X Project Y $ $ Initial investment outflow 170 000 245 000 Subsequent cash inflows Year 1 45 000 70 000 Year 2 45 000 80 000 Year 3 45 000 90 000 Year 4 45 000 60 000 Year 5 45 000 40 000 Requirements: (1) Calculate the payback period for both projects. (4 marks) (ii) Calculate the net present value for both projects. (6 marks) (ii) Calculate the internal rate of return for project 'X'. (6 marks) (iv) Advise on which project should be selected for investment. Justify your recommendation (4 marks)