A firm with a 13.5 percent cost of capital is evaluating two…
A firm with a 13.5 percent cost of capital is evaluating two projects for this year’s capital budget. The projects’ expected after-tax cash flows are as follows: Year: 0 1 2 3 Project X: -$6,000 $3,300 $2,200 $3,200 Project Y: -$4,000 $1,800 $2,200 $2,100 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?