Page 1: Previous Page Next Page Page 17 of 19 1 Page 2 2 Question 17 (Mandatory) (1 point) Projects X and Y are mutually exclusive. The required return is 10% Year Cash Flow (X) Cash Flow (Y) 0 -175,000 20,000 1 85,000 10,000 2 35,000 10,000 3 125.000 10,000 If you apply the PI criterion, which investment will you choose? Why? Page 3 3 Page 4 A) Both projects X and Y, because Pl is greater than 0. 4 B) Project X, because Pl is positive and higher. Page 5: C) Project Y, because Pl is greater than 1 and higher. 5 D) Project X, because Pl is greater than 1 and higher E) Both projects X ad Y. because Pl is greater than 1. 80 so