Using a discount rate of 12 percent, you found that two mutually exclusive projects produce the same positive NPV. Both projects have 5-year lives. During Year 1 and Year 2, Project X has larger cash flows than Project Y. Given this information, you can reasonably conclude that from a financial perspective, it makes no difference which project you accept. Project X is preferable to Project Y. one project will be preferred at rates less than 12 percent and the other will be preferred at rates higher than 12 percent. at Time 0, Project Y requires a smaller investment than Project X. only Project Y should be accepted.

Using a discount rate of 12 percent, you found that two mutually exclusive projects produce the same positive NPV. Both projects have 5-year lives. During Year 1 and Year 2, Project X has larger cash flows than Project Y. Given this information, you can reasonably conclude that from a financial perspective, it makes no difference which project you accept. Project X is preferable to Project Y. one project will be preferred at rates less than 12 percent and the other will be preferred at rates higher than 12 percent. at Time 0, Project Y requires a smaller investment than Project X. only Project Y should be accepted