You have forecasted the following cash flows for two mutually exclusive projects, X and Y: Cash Flows: Time Project X Project Y 1 11,000 22,000 2 12.000 24,000 3 15,000 29.000 4 20,000 32.000 Decision Metrics: Payback 2.47 years 2.48 years NPV 18,264 29,609 IRR 28.9% 25.8% Both projects promote the firm's overall strategic direction, and the firm has plentiful resources, enough to undertake any value-creating opportunities that arise. The cost of capital is 7%. Which project should you choose, and why? Project X because the crossover rate is 19.4% Project Y, because it has a longer payback Project X because it requires a lower initial cash flow Project X because it has a higher IRR Project Y. because it has a higher NPV