Question: Multiple choice A firm is considering the following two mutually exclusive projects: Project X I nitial Investment (I X ) = $100 CF X 1

Multiple choice

A firm is considering the following twomutually exclusiveprojects:

Project X

Initial Investment (IX) = $100

CFX1= $150

Project Y

Initial Investment (IY) = $500

CFY1= $625

A If the firm's cost of capitalk = 20%, which project(s) should be selected -X, Y, Neither, or Both?

B X

C Y

D Neither

E Both

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