Your organisation, DW Ltd. is considering which of TWO (2) mutually exclusive projects it should undertake. The marketing director thinks that the project with the highest Net Present Value (NPV) should be chosen whereas the sales director thinks that the one with the highest Internal Rate of Return (IRR) should be undertaken, especially as both projects have the same initial outlay and length of life. The company anticipates a cost of capital of 10% and the net, after tax, cash flows of the TWO (2) projects are as follows: Required: Year 0 2 3 Project X RM'000 -200 35 80 90 75 30 a. Calculate the Net Present Value (NPV) for both projects. b. Calculate the Internal Rate of Return (IRR) for both projects. Recommend, with reasons, which project should be undertaken. (10 marks) (12 marks) (3 marks) Project Y RM'000 -200 198 10 10 S S [Total: 25 marks)