The finance manager of Company A. is evaluating two mutually exclusive projects with the following cash flows.

Year	Project X ($)	Project Y ($)
0	(100,000)	(150,000)
1	30,000	45,000
2	30,000	45,000
3	35,000	55,000
4	35,000	55,000
5	45,000	65,000

Company A's cost of capital is 8 percent and cut-off periods used by the firm are 3.5 years for regular payback period and 4 years for discounted payback period. Advise the company which project should be undertaken using:

A. the payback method of investment appraisal

B. the discounted payback method of investment appraisal

C. Net Present Value

D. Profitability Index