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14.2 Better Health, Inc., is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce
14.2 Better Health, Inc., is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce the following net cash inflows:
Project A
Year 1$500,000
Year 2$1,000,000
Year 3$2,000,00
Project B
Year 1$2,000,000
Year 2$1,000,000
Year 3$600,000
What is each project's NPV if the cost of capital is 10 percent? 5 percent? 15 percent?
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