Question: In an environment where cash flows are interconnected; (complete dependency) investment cost 200.000 TL, economic life 1 year, Net cash flows of project X with

In an environment where cash flows are interconnected; (complete dependency)

investment cost 200.000 TL,

economic life 1 year,

Net cash flows of project X with a discount rate of 10% are as follows:

20% chance of 10,000 TL

30% chance of 25,000 TL

35% chance of 15,000 TL

15% chance of 70.000 TL

The economic life of the Y project, which is possible together with the X project, is again 2 years, the investment cost is 150,000 TL and the discount rate is 10%.

The net cash flows of project Y are

1st year is 40% probability 60,000 TL and 60% probability 40,000 TL.

Year 2 net cash flows of Project Y will be 50,000 TL for sure.

Specify which project or projects will be accepted/rejected by making the calculations.

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