Mulroney Corp

Mulroney Corp.is considering two mutually exclusive projects.Both require an initial investment of $10,000,and their risks are average for the firm.Project X has an expected life of 2 years with after-tax cash inflows of $5,300 and $7,000 at the end of Years 1 and 2,respectively.Project Y has an expected life of 4 years with after-tax cash inflows of $3,500 at the end of each of the next 4 years.The firm's WACC is 7.6%.Use the replacement chain to determine the NPV of the most profitable project.

A) $2,155.12
B) $1,937.80
C) $1,430.71
D) $1,901.58
E) $1,811.03