Q2

2. The following cash flows are give for the two mutually exclusive projects X and Y. The project X requires an initial investment of $12,000 in time '0' and project Y needs an initial investment of $10,000 in time '0'. (a) Calculate the NPV for each project using a discount rate of 12%. (b) State your accept/reject decision (c) What would be your accept/reject decision if they were to be independent projects