A firm with a 13 percent cost of capital is evaluating two projects for this years capital budget. The project's expected after-tax cash flows are as follows:
Year: 0 1 2 3
Project X: -$7,000 $2,300 $3,900 $3,700
Project Y: -$11,000 $5,400 $5,100 $5,900
If Projects X and Y are mutually exclusive, which one should the firm adopt?
A. Project Y only
B. Both projects
C. Neither project
D. Project X only