Question: Question 2 (Mandatory) (1 point) Projects X and Y are mutually exclusive. The required return is 10%. Cash Flow (X) Cash Flow (Y) -175,000 -20,000
Question 2 (Mandatory) (1 point) Projects X and Y are mutually exclusive. The required return is 10%. Cash Flow (X) Cash Flow (Y) -175,000 -20,000 85,000 10,000 35,000 10,000 125,000 10,000 If you apply the IRR criterion, which investment will you choose? Why? Year 0 1 2 3 A) Project Y, because IRR is greater than 10% and higher. B) Project X because IRR is positive and higher. C) Project X, because IRR is greater than 10% and higher. D) Project Y, because IRR is positive and higher. E) Both projects X and Y, because IRR is greater than 10%
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