A firm with a 10 percent cost of capital is evaluating two p…
A firm with a 10 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: -$15,000 $6,200 $8,300 $5,700 Project Y: -$9,000 $3,700 $3,200 $3,300 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?