Question text A company has the opportunity to choose between Project X and Project Y. Project X costs $500 and has cash inflow of $400 in each of the next 2 years. Project Y also costs $500, and generates cash flows of $500 and $325 for the next 2 years, respectively. Which investment should the firm choose if the cost of capital is 25 percent? Select one:

a. Project X

b. Project Y

c. Neither

d. Not enough information to tell