Lumbini Furniture (Pvt) Ltd. is considering these two projects: Project X and Project Y. Each project has a cost of Rs 20,000,000, and the cost of capital for each project is 15 percent. The…

Lumbini Furniture (Pvt) Ltd. is considering these two projects: Project X and Project Y. Each project has a cost of Rs 20,000,000, and the cost of capital for each project is 15 percent. The expected net cash flows are as follows: YearExpected Net Cash Flows (in thousand)Project XProject Y0(Rs 20,000)(Rs 20,000)18,00012,00028,0007,00038,0005,00048,0004,000 a. Calculate each project's payback period, net present value, and internal rate of return. b. Which project or projects should be accepted if they are independent? c. Which project should be accepted if they are mutually exclusive? d. How might a change in the cost of capital produce a conflict between the NPV and IRR ranking of these two projects? Would this conflict exist if cost of capital were 5 percent?