Question: Nordstrom is considering two mutually exclusive projects x and y with identical initial outlays of $1,000,000 and useful lives of 5 years. X is expected

Nordstrom is considering two mutually exclusive projects x and y with identical initial outlays of $1,000,000 and useful lives of 5 years. X is expected to produce an after tax cash flow of $300,000 each year. y is expected to produce a single after tax net cash flow of $2,015,000 in year 5. the discount rate is 15%. Whats the net present value for each project? whats the IRR? What decision should they make?

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