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Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $ 1 0 , 8 0 0 at t = 0

Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,800 at t=0. Project x has an expected life of 2 years with after-tax cash inflows of $6,600 and $7,400 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. Each project has a WACC of 8%. Using the replacement chain approach, what is the NPV of the most profitable project? Do not round the intermediate calculations and round the final answer to the nearest whole number.
a. $3,875
b. $3,075
c. $3,761
d. $4,242
e. $3,442
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