Question: A company is considering three mutually exclusive projects with the below provided information. Which project the company should accept if its cost of capital is

A company is considering three mutually exclusive projects with the below provided information. Which project the company should accept if its cost of capital is 10%?

Preject

Projects Life in years

Initial Investment

PV of Net Cash Flows at 10%

X

6

-20,000

24,000

Y

5

-16,000

20,000

Z

6

-16,000

19,000

Select one:

a. Project Z

b. Project X

c. Projects X and Y

d. Project Y

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