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16 Neeyo out of A company wants to decide which project to undertake X or Y. The company wants to evaluate each project with the

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16 Neeyo out of A company wants to decide which project to undertake X or Y. The company wants to evaluate each project with the same Initial investment by using the Net Present Value Method. The discount rate to be used is 10 percent, which is the WACC for the company. The following table gives information on these two projects: 300 PF Initial Investment and Cash Flows of Projects X and Y in AED Project X Project Y Initial investment 175,000 175.000 Year 1 Cash flow 30,000 50,000 Year 2 Cash flow 120,000 70,000 Year 3 Cash flow 80,000 130,000 Calculatethe Net Present Value (NPV) for Project X Project Y Note: You can use a financial calculator, Po - B Answer for NPV of Project X @ Answer for NPV of Project Y: Path

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