Timco is considering two mutually exclusive projects. Project X costs 100 and provides after tax inflows of 90 per year for 2 years.

Timco is considering two mutually exclusive projects. Project X costs 100 and provides after tax inflows of 90 per year for 2 years. Project Y costs 100 and provides after tax inflows of 70 per year for three years. The cost of funds is 8%. Which project should Timco choose? Show the numbers to prove it.