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

7

-17,000

23,000

Y

6

-16,000

21,000

Z

7

-16,000

21,000

Select one:

a. Project Z

b. Project X

c. Project Y

d. Projects X and Y

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