Question: The CSI corporation is considering two mutually exclusive projects, X and Y. The WACC for each of the projects is 10%. The cash flows for

The CSI corporation is considering two mutually exclusive projects, X and Y. The WACC for each of the projects is 10%. The cash flows for each project is displayed below:

Project X Project Y

Initial investment $350,000 $425,000

Year Cash inflows Cash Inflows

1 $140,000 $175,000

2 $165,000 $150,000

3 $190,000 $125,000

4 $100,000

5 $75,000

6 $50,000

The NPV of project X is _______

The NPV of project Y is _______

The Annualized NPV of project X is ______

The annualized NPV of project Y is _______

Which project should be chosen based on the annualized NPV? _______

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