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# (Solved): Top Gun Construction Co. is evaluating two projects. Each project requires a \$20,000 investment. Pro ...

Top Gun Construction Co. is evaluating two projects. Each project requires a

`\$20,000`

investment. Project

`x`

is the purchase of a concrete pump. Project

`Y`

is a hydraulic scissor lift. You have calculated the NPV and IRR for each project based on a

`9%`

discount rate and have arrived at the following results: The NPV of

`x`

is

`\$2,551.83`

and the IRR of

`x`

is

`14%`

. The NPV of

`Y`

is

`\$1,976.03`

and the IRR of

`Y`

is

`16.29%`

Based on the information provided, the correct decision is Multiple Choice

`◻`

Accept

`Y`

because it has the highest IRR. Reject both because the payback period is too high. Accept both projects because they have positive NPVs. Accept

`x`

because it has the highest NPV and they are mutually exclusive.

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