*******PLEASE PROVIDE SOLUTION AND ANSWER (A-E)*****

Given the following information for projects X and Y, which one should be chosen and why?

	Project X	Project Y
Net present value	$1,500,000	$2,000,000
Project life	5 years	8 years
Required return	10%	10%

Select one:

a. Choose Project X as it has a lower equivalent annual cost than Project Y.

b. Choose Project Y as it has a lower equivalent annual cost than Project X.

c. Choose Project Y as it has a higher equivalent annual benefit than Project X.

d. Choose Project X as it has a higher equivalent annual benefit than Project Y.

e. Choose Project Y as it has a higher net present value than Project X.