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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?

Project A
Project B

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?

Project A
Project B

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