The Delta Company is analyzing projects X, Y, and Z as possible investment opportunities. Each of these projects has a useful life of six years. The following information has been obtained: Initial investment needed Present value of future cash inflows Internal rate of return Project X Project Y Project Z $260,000 $180,000 $340,000 $295,000 $220,000 $390,000 20% 16% 18% Which of the following statements is correct? a) Project X is preferred over Project Y according to the profitability index. b) Project Y is preferred over Project Z according to an internal rate of return ranking. c) Project Z is preferred over Project X according to a net present value ranking d) Project X is preferred over Project Z according to the profitability index