Question: Consider the following expected cash flows from these projects: a. What is the NPV of each project if discount rate is 10 percent? b. Note

Consider the following expected cash flows from these projects: Period 0 Project A -680 1 425 2 510 Project D -680

a. What is the NPV of each project if discount rate is 10 percent?

b. Note that the cash flows from project D are the sum of the cash flows from projects B and C in exercises 10 and 11, and that the NPV of project D is the same as the NPV of project B in exercise 10. Is the latter fact a coincidence? Explain why or why not.

Period 0 Project A -680 1 425 2 510 Project D -680 270 632

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