Two mutually exclusive projects have an initial cost of $$41,000$ each. Project $x$ produces cash inflows of $$29,000,$$$33,000,$ and $$28,000$ for Years $1$ through $3,$

respectively. Project $Y$ produces cash inflows of $$29,000,$$$30,500$ and $$23,000$ for Years $1$ through $3,$ respectively. The required rate of return is $10\mathrm{.}7$ percent for

Project $x$ and $9\mathrm{.}8$ percent for Project $Y.$ Which project$($s$)$ should be accepted and why?

Multiple Choice

Project $x,$ because it has the higher required rate of return.

Project $x,$ because it has the larger NPV$.$

Both projects, because they both have positive NPVs$.$

Project $Y,$ because it has the higher required rate of return.

Project Y$,$ because it has the largest NPV