Top Gun Construction Co$.$ is evaluating two projects. Each project requires a $$20,000$ investment. Project $x$ is the purchase of a concrete pump. Project $Y$ is a hydraulic scissor lift. You have calculated the NPV and IRR for each project based on a $9\%$ discount rate and have arrived at the following results:

The NPV of $x$ is $$2,551\mathrm{.}83$ and the IRR of $x$ is $14\%.$ The NPV of $Y$ is $$1,976\mathrm{.}03$ and the IRR of $Y$ is $16\mathrm{.}29\%$

Based on the information provided, the correct decision is

Multiple Choice

$$ Accept $Y$ because it has the highest IRR.

Reject both because the payback period is too high.

Accept both projects because they have positive NPVs$.$

Accept $x$ because it has the highest NPV and they are mutually exclusive.