A firm has three independent projects under consideration each with a required rate of return of 10%/ The total projects budget is only $2,000.Project X has an initial investment of $2,000 and a single cash flow in year one of $2,360.Project Y has an initial investment of $1,000 and a single cash flow in year one of $1,200.Project Z has an initial investment of $1,000 and a single cash flow in year one of $1,170.Calculate the IRR and NPV for each of these projects.If we assume that we cannot "repeat" these projects (i.e.,we cannot do project Z twice)which project or combination of projects should the firm undertake? Why?
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