Question: Dax Systems is considering a project that has the following cash flows for Project X and Y. If these projects are dependent and the cost

Dax Systems is considering a project that has the following cash flows for Project X and Y. If these projects are dependent and the cost of capital is 10%, which project (s) should be accepted?

Cost of Capital = 10%
Year Project X Project Y
0 -$1,000 -$2,000
1 $500 $1,400
2 $500 $800
3 $500 $400

Project X only

Project Y only

Project X and Y

None of them

Cannot be determined because modified IRR is not provided.

Please help/explain. Thank you

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