Question: Show work: 2) Consider two mutually exclusive projects X and Y with identical initial outlays of $600,000 and useful lives of 5 years. Project X

Show work:

2) Consider two mutually exclusive projects X and Y with identical initial outlays of $600,000 and useful lives of 5 years. Project X is expected to produce an after-tax cash flow of $180,000 each year. Project Y is expected to generate a single after-tax cash flow of $1,015,000 in year 5. The discount rate is 14%.

A) calculate net present value of each project

B) calculatethe IRR for each project.

C) accept or reject each project.

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