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Here are the cash flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 102 102 1 32 51
Here are the cash flow forecasts for two mutually exclusive projects: |
Cash Flows (dollars) | ||
Year | Project A | Project B |
0 | 102 | 102 |
1 | 32 | 51 |
2 | 52 | 51 |
3 | 72 | 51 |
a-1. | What is the NPV if the opportunity cost of capital is 3%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Project | NPV |
A | $ |
B | |
a-2. | Which project would you choose? | ||||
|
b-1. | What is the NPV if the opportunity cost of capital is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Project | NPV |
A | $ |
B | |
b-2. | Which would you choose? | ||||
|
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