Suppose you are considering one of two projects, whose financial information in four future scenarios...
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Accounting
Suppose you are considering one of two projects, whose financial information in four future scenarios is shown below. However, the projects are incompatible; you can only do one of them. The risk-free rate is 2%. Project X requires an initial investment of 85; Project Y requires an initial investment of 135. If your objective is value maximisation, should you (i) do Project X, (ii) do Project Y, or (iii) do neither project? (Recall that the projects are incompatible; doing both is not an option.) Explain how you reach your conclusion
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