The CEO of Bed, Bath and Beyond (BBBY) is presented with the following two mutually exclusive projects.

Year Project A Project B

0 -$150,000,000 -$372,500,000

1 68,710,000 159,410,000

2 76,900,000 193,300,000

3 71,400,000 154,900,000

4 40,610,000 110,510,000

What is the yield of the 10 Year Treasury Note?

How many bonds does BBBY have?

Excel Exercise:

What is the NPV for each project? 25 points

PLEASE SHOW CALCULATION FOR NPV