Your company is considering two mutually exclusive projects X1 and X2 also considered are 2 projects, Y and Z Independant of the X projects and each other The project costs and the cash flows are shown below Years X1 X2 Y Z 0 $2000 $2000 $15000 $25000 1 200 2000 5000 8500 2 600 200 5000 8500 3 800 100 5000 8500 4 1400 75 5000 8500 Projects X1 and X2 are equally risky, and the firms required rate of return is 12 Which project should be accepted and which should be rejected Please base your decision on any method, but justify the use of the method you have choosen

Question: Your company is considering two mutually exclusive projects. X1 and X2; also considered are 2 projects, Y and Z. Independant of the X projects and

Your company is considering two mutually exclusive projects. X1 and X2; also considered are 2 projects, Y and Z. Independant of the X projects and each other. The project costs and the cash flows are shown below.

Years	X1	X2	Y	Z
0	-$2000	-$2000	-$15000	-$25000
1	200	2000	5000	8500
2	600	200	5000	8500
3	800	100	5000	8500
4	1400	75	5000	8500

Projects X1 and X2 are equally risky, and the firms required rate of return is 12%. Which project should be accepted and which should be rejected? Please base your decision on any method, but justify the use of the method you have choosen.

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