EXERCISE 14-14 Comparison of Projects Using Net Present ValueLO14-2 Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the

funds as follows: The company's discount rate is 18%. Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Invest in Invest in Project X Project Y $35,000 $35,000 $12,000 6 years $90,000 6 years