Project X Has an Initial Cost of $20,000 and a Cash

Multiple Choice

Project X has an initial cost of $20,000 and a cash inflow of $25,000 in Year 3.Project Y costs $40,700 and has cash flows of $12,000,$25,000,and $10,000 in Years 1 to 3,respectively.The discount rate is 6 percent and the projects are mutually exclusive.Based on the individual project's IRRs you should accept Project ________; based on NPV you should accept Project ________; the final decision should be to accept Project ________.

A) Y; Y; Y
B) Y; X; X
C) X; Y; Y
D) X; X; X
E) Y; X: Y