Problem 8-30 Mutually Exclusive Investments (LO1)

Here are the cash-flow forecasts for two mutually exclusive projects:

	Cash Flows, $
Year	Project A	Project B
0	$100	$100
1	30	49
2	50	49
3	70	49

a-1. Find the NPV of each project. (Do not round intermediate calculations. Round your answers to the nearest cent.)

a-2. Which project would you choose if the opportunity cost of capital is 2%?

b-1. Find the NPV of each project. (Do not round intermediate calculations. Round your answers to the nearest cent.)

b-2. Which project would you choose if the opportunity cost of capital is 12%?