Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 -$365,000 -$38,000 1 25,000 16,000 2 65,000 12,000 3 65,000 17,000 4 425,000 15,000 Whichever project you...

Consider the following two mutually exclusive projects:
Year   Cash Flow (X)       Cash Flow (Y)
0          -$365,000             -$38,000
1                25,000                16,000
2                65,000                12,000
3                65,000                17,000
4              425,000                15,000
Whichever project you choose, if any, you require a 13 percent return on your investment.

i. Which investment will you choose if you use the payback decision criteria?

Justify your answer.
ii. Which investment will you choose if you use the NPV decision criteria? Justify

your answer.
iii. Which project will you choose ultimately based on your answers above?