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Labeau Products Ltd., of Perth, Australia, has $55,000 to invest. The company is trying to...

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Accounting

Labeau Products Ltd., of Perth, Australia, has $55,000 to invest. The company is trying to decide between two alternative uses for the funds, as follows:
Investment Options
Project X Project Y
Initial Investment $ 55,000 $ 55,000
Annual cash inflows 19,000
Single cash inflow at the end of 10 years 250,000
Life of the project 10 years 10 years
Labeaus discount rate for both projects is 18%.(Ignore income taxes.)
Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables.
Required:
Determine the net present value. (Negative amounts should be indicated with a minus sign. Round discount factor(s) to 3 decimal places.)
Which alternative would you recommend that the company accept?
multiple choice
Project X
Project Y

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