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Item1 The following are the cash flows of two independent projects: Year Project A Project B 0 $ (220 ) $ (220 ) 1 100
Item1
The following are the cash flows of two independent projects:
| Year | Project A | Project B | ||||
| 0 | $ | (220 | ) | $ | (220 | ) |
| 1 | 100 | 120 | ||||
| 2 | 100 | 120 | ||||
| 3 | 100 | 120 | ||||
| 4 | 100 | |||||
a. If the opportunity cost of capital is 10%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
|
b. Which of these projects is worth pursuing?
- Neither
-
Project A
-
Project B
-
Both
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