K M L N B D E 1 F G H Which project will Wilson choose? Pandora Lands is considering two mutually exclusive projects, Project X and Project Y. Both projects are repeatable. Both require an initial investment of $10,000 at t=0. Project X has an expected life of 3 years with after-tax cash inflows of $5,000 at the end of Years 1, 2, and 3 respectively. Project Y has an expected life of 5 years with after-tax cash inflows of $4,000 at the end of each of the next 5 years. Each project has a WACC of 11%. Using EAA analysis determine which project Pandora should choose (cell L6) Cost of Capital 11% Project X Year Cash flow EAA NPV 0 Project Y NPV EAA Year 0 Cash flow P1 P2 P4 P5 P3 P6 pg P7 P10 P11 P8 BE