The following information is related to two proposed capital investment projects, projects X and Y. Each project has a cost of 10,000 and the cost of capital for both projects is 12%. The projects expected net cash flows are as follows:

Year	Project X	Project Y
0	(10,000)	(10,000)
1	6,500	3,500
2	3,000	3,500
3	3,000	3,500
4	1,000	3,500

Required:

A: Calculate each projects nominal payback period, net present value (NPV), internal rate of return (IRR) [18% for project X], and profitability index (PI).

B: Should both projects be accepted if they are interdependent?

C: Which project should be accepted if they are mutually exclusive?