Cooper Company must evaluate two capital expenditure proposals. Cooper’s hurdle rate is 10%. Data for the two proposals follow. Required investment $120,000 $120,000 Annual after-tax cash inflows 24,000 After-tax cash inflows at the end of years 3, 6, 9, and 12
Cooper Company must evaluate two capital expenditure proposals. Cooper’s hurdle rate is 10%. Data for the two proposals follow.

Proposal X Proposal Y
Required investment $120,000 $120,000
Annual after-tax cash inflows 24,000
After-tax cash inflows at the end of years 3, 6, 9, and 12 72,000
Life of project 12 years 12 years