Question: Projects X and Y are mutually exclusive. The required return is 10%. 2: Year Cash Flow (X) Cash Flow (Y) 0 - 175,000 -20,000 1

 Projects X and Y are mutually exclusive. The required return is

Projects X and Y are mutually exclusive. The required return is 10%. 2: Year Cash Flow (X) Cash Flow (Y) 0 - 175,000 -20,000 1 85.000 10,000 2 35,000 10.000 3 125.000 10,000 If you apply the Pl criterion, which investment will you choose? Why? se 3: A) Both projects X and Y, because Pl is greater than 0. B) Project Y, because Pl is greater than 1 and higher. 1 C) Both projects X and Y, because Pl is greater than 1. "age 5: D) Project X, because Pl is greater than 1 and higher, 5 E) Project X, because Pl is positive and higher

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