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Back Problem 1 Workspace CA firm is considering two mutually exclusive projects. The cashflows for this investment are shown in the table to the

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Back Problem 1 Workspace CA firm is considering two mutually exclusive projects. The cashflows for this investment are shown in the table to the right. Which investment should be funded based on the NPV analysis? Initial Investment Cost of Capital Investment X $85,000 Investment Y $130,000 8% 12% Year (yr. start convention) Cash flows (yr.end convention) 1 $25,000 $40,000 2 $35,000 $35,000 3 $45,000 $30,000 4 $50,000 $10,000 5 $55,000 $5,000

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