題組內容

2. (20 points, 10 points for each) A company is evaluating two mutually exclusive investment projects, Project X and Project Y. The expected cash flows (in millions of dollars) are given below. The firm's cost of capital is 12%.

(a) Calculate the NPV of Projects X and Y. Based on the NPV rule, which project should the company choose if the firm must select one of the two projects? Show all calculations. Round your answers to two decimal places where appropriate.