BAG Corporation is considering the following two projects; namely Project X and Project Y: Project Y Cash Flow ($) Cash Flow ($) -100,000 30,000 Project X Year 0 -80,000 10,000 20,000 Year 1 Year 2 60,000 5,000 Year 3 60,000 Year 4 40,000 60,000 The discount rate for Project X is 9%, and the discount rate for Project Y is 10%. 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? b) i. Calculate the profitability index for each project. ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be accepted when the profitability index rule is considered? i. Calculate the net present value (NPV) for each project. c) ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be accepted when the NPV rule is considered?

BAG Corporation is considering the following two projects; namely Project X and Project Y: Project Y Cash Flow ($) Cash Flow ($) -100,000 30,000 Project X Year 0 -80,000 10,000 20,000 Year 1 Year 2 60,000 5,000 Year 3 60,000 Year 4 40,000 60,000 The discount rate for Project X is 9%, and the discount rate for Project Y is 10%. 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? b) i. Calculate the profitability index for each project. ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be accepted when the profitability index rule is considered? i. Calculate the net present value (NPV) for each project. c) ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be accepted when the NPV rule is considered?