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You are considering the following two mutually exclusive projects. The required rate of return is 12 percent for project X and 11 percent for project
You are considering the following two mutually exclusive projects. The required rate of return is 12 percent for project X and 11 percent for project Y. You should accept Project ___ because its NPV is _____ greater than that of the other project.
Year | Project X | Project Y |
0 | -$55,000 | -$81,900 |
1 | $37,200 | $36,200 |
2 | $22,100 | $65,600 |
3 | $10,200 | $0 |
Question 30 options:
Y; $862.62 | |
Y; $924.08 | |
Y; $921.02 | |
X; $874.91 | |
X; $901.18 |
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