Question: uired return is 10%. 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
uired return is 10%. 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 PI criterion, which investment will you choose? Why? A) Both projects X and Y, because Pl is greater than 0. B) Project Y, because Pl is greater than 1 and higher. OC) Both projects X and Y, because Pl is greater than 1. D) Project X, because Pl is greater than 1 and higher. E) Project X, because Pl is positive and higher
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