Project X and Project Y have a cost of $50,000,000 today. Project X will have cash flows of $20,000,000 per year for three years, while Project Y will have cash flows of $18,000,000 the first year, $19,000,000 the second year, and $23,000,000 the third year.
Calculate the NPV and the IRR for Project X using a 12% cost of capital and show your work by using TWO of the following methods:
(1) using the formula,
(2) identifying all variables using the calculator's function keys,
(3) using the steps on the calculator to calculate NPV and IRR.