There are two projects, X and Y. Each project requires an investment of $20,000. The Company’s WACC is 10%. Net profit before depreciation and after tax Years Project X Project Y 1 4,000 5000 2 6,000...

1. There are two projects, X and Y. Each project requires an investment of $20,000. The Company’s WACC is 10%.

             Net profit before depreciation and after tax

You are required to rank these projects according to the pay back method and NPV from the above information using discounted cash flow. Advice the company’s management on the choice of the project