The financial manager of Mana Company want you to analyze two capital investment (project X & project Y)
The following data pertains to these projects

Project

X

Y

Cost

$ 10,000

$ 12,000

Cost of capital

8%

8%

years Expected net cash flow
0 $ (10,000) $ (12,000)
1 $ 3,020 $ 3,500
2 $ 3,520 $ 3,700
3 $ 4,020 $ 3,900
4 $ 4,520 $ 4,100
5 $ 4,300
1) Find net present value
2) Assume that projects X and Y are independent, which one do you recommend, and why?
3) Assume that projects X and Y are mutually exclusive, which one do you recommend, and why?

3) Assume you can replicate the project three times, which one do you recommend, and why?