Breakeven Cash inflows and risk.PuebloEnterprises is considering investing in ei

Breakeven Cash inflows and risk.PuebloEnterprises is considering investing in either of towmutually exclusiveprojects X and Y. Project X requires an initial investment of $30000; project Y requires $40000. Each projects cash inflows are 5-year annuities. Project Xs inflows are $10000 per year; project Ys are $150000. The firm has unlimited funds and in the absence of risk differences accepts the project with the highest NPV. Thecost of capitalis 15%.Profitability of achieving Cash inflow in given rangeRange of cash inflow Project X Project Y$0 to $5000 0%` 5%$5000 to $7500 10 10$7500 to $10000 60 15$10000 to $12000 25 25$12500 to $15000 5 20$15500 to $20000 0 15Above $20000 0 10b. Find the breakeven cash inflow for each project.c. The firm has estimated the probabilities of achieging various ranges of cahse inflows for the two projects as shown in the table above. What is the probability that each project will achieve the breakeven cahs inflow found in part b.

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