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Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 9%. The

Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 9%. The expected Free Cash Flows of the projects are as follows:

Period Annual Cash Flows Project A Annual Cash Flows Project B
0 ($20,000) ($20,000)
1 4,200 11,000
2 6,000 7,000
3 8,000 6,000
4 10,000 2,000

Compute the Net Present Value (NPV) for "A". Show your inputs/work for partial credit.

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