Evaluating two projects for this years capital budget

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A firm with 9 percent cost of capital is evaluating two projects for this year's capital budget. The project's expected after- tax costs are as follows:

Year 0 1 2 3   

Project X -$6,000 $3,200 $2,300 $2,600

Project Y -$4,000 $1,900 $2,100 $1,300

Projects X and Y are mutally exclusive, which one should the firm adopt?

A. X only

B. Y only

C. Both projects

D. Neither project

Reference no: EM131517271

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