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Here are the cash flow forecasts for twomutually exclusiveprojects: Cash Flows (dollars) Year Project A Project B 0 108 108 1 38 57 2 58
Here are the cash flow forecasts for twomutually exclusiveprojects: |
Cash Flows (dollars) | ||
Year | Project A | Project B |
0 | 108 | 108 |
1 | 38 | 57 |
2 | 58 | 57 |
3 | 78 | 57 |
a-1. | What is the NPV if the opportunity cost of capital is 5%?(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 15%?(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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