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Labeau Products, Limited, of Perth, Australia, has $15,000 to invest. The company is trying to...

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Accounting

Labeau Products, Limited, of Perth, Australia, has $15,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Project XInvest in Project YInvestment required$ 15,000 $ 15,000 Annual cash inflows$ 5,000 Single cash inflow at the end of 6 years $ 36,000 Life of the project6years6years The companys discount rate is 16%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. 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?

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