Question: Consider two mutually exclusive projects: End of year cash flows Year Project X Project Y 0 -$100,000 -$100,000 1 38,000 0 2. 38,000 0 3

Consider two mutually exclusive projects: End of year cash flows Year

Consider two mutually exclusive projects: End of year cash flows Year Project X Project Y 0 -$100,000 -$100,000 1 38,000 0 2. 38,000 0 3 38,000 120,000 If the discount rate for both projects is 5 percent, the decision should be to accept only Project Y accept only Project X reject both projects O accept both projects

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