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Exercise 12-14 Comparison of Projects Using Net Present Value (LO12-2] Labeau Products, Ltd., of Perth,...

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Exercise 12-14 Comparison of Projects Using Net Present Value (LO12-2] Labeau Products, Ltd., of Perth, Australia, has $26,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project Invest in Invest in Project X Project Y $ 25,000 $26.000 $ 8.000 $ se, eee 6 years 6 years The company's discount rate is 12% Click here to view Exhibit 128.1 and Exhibit 128-2 to determine the appropriate discount factors) using tables Required: 1. Compute the net present value of Project X 2. Compute the net present value of Proiect Y 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3

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