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You're Methodist Hospital's CFO in San Antonio. The CEO wants you to evaluate Projects X and Y. Each project costs $10,000 and has a 12

You're Methodist Hospital's CFO in San Antonio. The CEO wants you to evaluate Projects X and Y. Each project costs $10,000 and has a 12 percent cost of capital. Project net cash flows:

Year Project X Project Y
0 -$11,000 -$11,000
1 $7,000 $3,000
2 $3,000 $3,000
3 $3,000 $4,000
4 $1,000 $4,000

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