A firm is considering the following twomutually exclusiveprojects:

Project X

Initial Investment (I_X) = $1,000

CF^X₁= $800

CF^X₂= $480

Project Y

Initial Investment (I_Y) = $4,000

CF^Y₁= $1,320

CF^Y₂= $3,240

If the firm's cost of capitalk = 3%, which project(s) should be selected -X, Y, Neither, or Both?Use any method you prefer to analyze this project and to then choose one of the four given options.

A. Project Y

B. Project X

C. Both Projects

D. Neither Project