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Consider two independent projects with the following expected cash flows (expressed in $ millions)... End of year... Project X Project Y 0 - 30 -

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Consider two independent projects with the following expected cash flows (expressed in $ millions)... End of year... Project X Project Y 0 - 30 - 80 1 20 40 2 20 60 The cash flows at time zero represent the cost of each project (payable immediately). The internal rate of return of project X is 22% per annum, the internal rate of return of project Y is 15% per annum and the cost of capital for each project is 8% per annum. Which project(s) should you choose

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