Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars)

Year Project A Project B

0 115 115

1 45 64

2 65 64

3 85 64

a-1. What is the NPV of each project if the opportunity cost of capital is 2%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a-2. Which project would you choose?

Project A

Project B

b-1. What is the NPV of each project if the opportunity cost of capital is 14%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)