The cost of capital for each project is 10%.

The project’s expected net cash flows are as follows:

After the calculation,the NPV and IRR of project X and Y are (-$4772, 7.21%) and ($951, 10.81%) respectively.

Which project is financially acceptable? If you reach different conclusions regarding the finanical acceptability of project X and project Y, explain why, given that both projects return total cash flows of $90,000 over the four years.