A firm with a 12 percent cost of capital is evaluating two p…
A firm with a 12 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: -$10,000 $3,100 $5,400 $4,300 Project Y: -$8,000 $4,100 $2,800 $4,300 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?