Question: Projects X and Y are mutually exclusive. The required return is 10%. Year Cash Flow (X) Cash Flow (Y) 0 -175.000 -20.000 1 85,000 10.000

Projects X and Y are mutually exclusive. The required return is 10%. Year Cash Flow (X) Cash Flow (Y) 0 -175.000 -20.000 1 85,000 10.000 2 35,000 10,000 3 125.000 10,000 If you apply the Pl criterion, which investment will you choose? Why? O A) Project Y, because Pl is greater than 1 and higher. B) Both projects X and Y because Pl is greater than 1. OC) Project X, because Pl is positive and higher. OD) Both projects X and Y, because Pl is greater than 0. E) Project X, because Pl is greater than 1 and higher

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