You are a financial analyst for DE Company. The director of capital budgeting has asked you to analyze two proposed capital investments.

Projects X and Y. Each project has a cost of $10,000. And the required rate of return for each project is 12%. The projects' expected net cash flows are as follows:

year	Project X	Project Y
0	$(10,000)	$(10,000)
1	7,500	5,000
2	3,000	5,000
3	4,500	5,000

1. Calculate each projects NPV, IRR, PB, and DPB.
2. Which project or projects should be accepted they are independent?
3. Which project should be accepted if they are mutually exclusive?