A firm with a cost of capital of 4% have two mutually exclusive projects. Project X requires an initial investment of $40,000 today and is expected to generate $12,000 for the next 10 years. Project Y requires an initial investment of $46,000 and is expected to generate $20,000 for the next 10 years. The firm will choose Project Y, which has an NPV of $126,678 Project Y, which has an NPV of $62,491 Project Y, which has an NPV of $116,218 Project X which has an NPV of $116,218 both projects, with NPV of $57,331 for Project X and $116,218 for Project Y