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The following are free cash flows for businesses X and Y:YearsProject XProject YYear 1 $ 8 , 5 0 0 $ 7 , 0 0

The following are free cash flows for businesses X and Y:YearsProject XProject YYear 1$8,500$7,000Year 28,0007,500Year 37,5008,000Year 47,0008,500Total31,00031,000 Assuming the costing of both projects has a 9% cost of capital, which project will be the most profitable from the investors perspective. [Hint: think about PV & FV]b. If you are buying in the investment which will you choose? WhyIf you are sellinf the investment which will you choose? Why?

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