An analyst has evaluated two mutually exclusive projects that have $3-$year lives. Project $x$ has an NPV of $$65,000,$ and an IRR of $10\mathrm{.}5$ percent. Project $Y$ has an NPV of $$72,000,$ and an IRR of $8\mathrm{.}9$ percent. The required return for Project $x$ is $10$ percent while it is $8$ percent for Project Y$.$ What outcome should the analyst recommend?

Accept Project $x$ and reject Project $Y$ based on their IRRs

Accept Project Y and reject Project X based on their NPVs

Accept Project $Y$ because it has lower required return

Accept both projects because both NPVs are positive

Accept Project $x$ because it has higher IRR