Question 4 BAG Corporation is considering the following two projects; namely Project X and Project Y: Project X Cash Flow ($) Cash Flow ($) -80,000 Project Y Year 0 -100,000 10,000 20,000 60,000...

Extracted text: Question 4 BAG Corporation is considering the following two projects; namely Project X and Project Y: Project X Cash Flow ($) Cash Flow ($) -80,000 Project Y Year 0 -100,000 10,000 20,000 60,000 40,000 30,000 60,000 Year 1 Year 2 Year 3 5,000 Year 4 60,000 The discount rate for Project X is 9%, and the discount rate for Project Y is 10%. a) i. Calculate the payback period for each project. ii. Suppose Project X and Project Y are mutually exclusive (you can choose either one of Project X and Project Y, but cannot choose both), which project(s) should be accepted if BAG Corporation requires a payback period of 3 years? i. Calculate the profitability index for each project. b) ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be accepted when the profitability index rule is considered? c) i. Calculate the net present value (NPV) for each project. ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be accepted when the NPV rule is considered?