Raj has two projects X and Y in hand. The same amount of risk is involved in both the projects. If the rate of return of project X and Y is 25% and 20% respectively, then under normal circumstance, which of the two projects is likely to be selected?

Project X Project Y Either of X and Y Depends upon the management.

Project X

In this situation Raj would select Project X, because it would get more return from this project as the rate of return is high as compared to project Y.