Reference no: EM132765022

X construction is considering two projects to develop. The estimated net cash flow from each project isas follows:

Year        Project X ($)              Project Y ($)

1               110,000                    75,000

2             65,000                       150,000

3             100,000                    60,000

4           115,000                    55,000

5                35,000                   60,000

Total        425,000                400,000

Each project requires an investment of $ 200,000.

The cost of capital is 10%.

Require to

Problem a) Calculate Net Present Value, Payback period, ARR and Profitability Index.