A firm is evaluating 2 projects with the following characteristics: Project X Project Y Payback:2 years Payback: 2.22 years NPV: $2,434.26 (discount rate=10%) NPV: $4,710.74 (discount rate=10%) IRR:15.38% IRR:19.28% If the firm's cost of capital is 10%, which of the following is TRUE? The evidence suggests the projects differ in the scale and/or timing of the cash flows. If the projects are independent, the firm should pursue only Project Y If the projects are mutually exclusive, the firm should pursue only Project Y None of the above is TRUE. Page 22 of 5 Previous Page Next Page