Question
Refer to two projects with the following cash flows: Year Project A 0 -$100 1 2 3 4 40 40 40 40 NPVA S
Refer to two projects with the following cash flows: Year Project A 0 -$100 1 2 3 4 40 40 40 40 NPVA S NPVB $ Project B -$100 50 50 50 If the opportunity cost of capital is 11%, which of these projects is worth pursuing? (Round your answers to the nearest cent.)
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
7th edition
978-0077616472, 77616472, 78034647, 978-0071314749, 71314741, 978-0078034640
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