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Capital Budgeting (NPV and IRR Analysis): Evaluate two investment projects, X and Y, based on their net present values (NPVs) and internal rates of return

Capital Budgeting (NPV and IRR Analysis): Evaluate two investment projects, X and Y, based on their net present values (NPVs) and internal rates of return (IRRs), with the following cash flows:

  • Project X: Initial Investment = $500,000, Cash Flows = $150,000 per year for 5 years
  • Project Y: Initial Investment = $700,000, Cash Flows = $200,000 per year for 4 years

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