(Solved): Beaconhouse National University School of Business 13 KM Ofr Raiwind Road, Lahore 54400 , Pakistan ...

Beaconhouse National University School of Business 13 KM Ofr Raiwind Road, Lahore 54400 , Pakistan BNU Tel: +92-42-35324318 URL: www.byu.edu.pk Email: [email protected] Question 4: (9 M) You are a financial analyst for the Kettle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects $$X$$ and $$Y$$. Each project has a cost of $$\$10,000$$, and the cost of capital for each is $$12\%$$. The projects' expected net cash flows are as follows: a. Calculate each project's payback period, net present value NPV anu profitability index (PI). b. Which project should be accepted if they are mutually exclusive considering the above techniques?