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Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 7%. Use this information for the questions.

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Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 7%. Use this information for the questions. Year 1 2 Project A Cash Flow Project B Cash Flow $32,400 -$14,400 9 ,720 4,320 9, 7204 ,320 9,720 4,320 4.860 2.160 4 ,860 2,160 2,430 2,160 3 4 5 6 Calculate the net present value of project A. $331.40 $2.709.21 $1.227.71 $3.802 $1.564.25

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