Question: A firm is considering the following two mutually exclusive projects: Project X Initial Investment (IX) = $100 CFX1 = $150 Project Y Initial Investment (IY)

A firm is considering the following two mutually exclusive projects: Project X Initial Investment (IX) = $100 CFX1 = $150 Project Y Initial Investment (IY) = $500 CFY1 = $625 If the firms cost of capital k = 20%, which project(s) should be selected X, Y, Neither, or Both?

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