Question: 5.-50. Projects X and Y are mutually exclusive; therefore, Acme Manufacturing can select only one of these projects. Project X costs $1,600 and has cash

5.-50. Projects X and Y are mutually exclusive; therefore, Acme Manufacturing

5.-50. Projects X and Y are mutually exclusive; therefore, Acme Manufacturing can select only one of these projects. Project X costs $1,600 and has cash flows of $1,000 in each of the next two years. Project Y costs $1,400 and generates cash flows of $900 in Year 1 and $850 in Year 2. Assume that Acme Manufacturing has a "Weighted Average Cost of Capital" (WACC) of 8%. a. Calculate the "Net Present Value" (NPV) for Project X and for Project Y. b. Which of these projects should Acme Manufacturing select? Why

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