npv

. No Spaci... Heading Heading 2 Subtitle Font 1 Normal Title Paragraph Test 2: Financial Management Name: Sumame Group Agreement number Task 1 The firm analyzes two proposed capital investments, Project X and Project Y Each project has a capital expenditure of 10,000, and the cost of capital is 12%. The projects' expected net cash flow as follows Year 0 1 2 3 4 Expected net cash flows, EUR Project X Project Y - 10.000 - 10.000 6,500 3,500 3,000 3,500 3.000 3.500 1.000 3,500 ZA Using the NPV criterion determine which project(s) should be accepted if they are indepe