Question: Question 2 (Mandatory) (1 point) Projects X and Y are mutually exclusive. The required return is 10%. Year Cash Flow (X) Cash Flow (Y) 0

Question 2 (Mandatory) (1 point) Projects X and Y are mutually exclusive. The required return is 10%. Year Cash Flow (X) Cash Flow (Y) 0 -185.000 -20.000 1 80,000 10,000 2 35,000 10,000 3 125,000 10.000 If you apply the PI criterion, which investment will you choose? Why? A) Project X, because Pl is greater than 1 and higher B) Both projects X and Y, because Pl is greater than 1. (C) Project Y, because Pl is greater than 1 and higher. D) Project X, because Pl is positive and higher. E) Both projects X and Y. because Pl is greater than 0

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