Question: 39. Projects X and Y are mutually exclusive; therefore, Acme Manufacturing can select only one of these projects. Project X costs $600 and has cash

39. Projects X and Y are mutually exclusive; therefore, Acme Manufacturing can select only one

of these projects. Project X costs $600 and has cash flows of $400 in each of the next two years.

Project Y also costs $600 and generates cash flows of $500 in Year 1 and $275 in Year 2.

Assume that Acme Manufacturing has a

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