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Can fly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows Project A Project B

Can fly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows

Project A Project B cash flow

0 -4.0 ?

1 2.0 1.7

2 3.0 3.2

3 5.0 5.8

The crossover rate of the two projects' NPV profiles is 9 percent. What is the cash flow for project B at t=0?

-8.73 million

-7.53 million

-4.22 million

-4.51 million

-4.0 million

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