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CDB Corporation has to choose only one investment project among the two options X and Y. The discount rate for the X is 9%, while
CDB Corporation has to choose only one investment project among the two options X and Y. The discount rate for the X is 9%, while the discount rate for the Yis 39% (project Y happens to have higher market risk). Which investment project should the CDB select and why? (Assume a 0% inflation rate and that projected costs do not change over time.) X Y -$900.000 -$900,000 $500,000 $550,000 $600,000 $600.000 $685,000 Year 0 1 2 3 Select one: oa. Y, because it has a higher net present value Ob. X, because it has a higher net present value @cy, because it has a higher equivalent annual cash flow od X, because it has a higher equivalent annual cash flow
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