Question
The following are the cash flows of two independent projects: Year Project A Project B 0 $ (340 ) $ (340 ) 1 170 240
The following are the cash flows of two independent projects:
| Year | Project A | Project B | ||||
| 0 | $ | (340 | ) | $ | (340 | ) |
| 1 | 170 | 240 | ||||
| 2 | 170 | 240 | ||||
| 3 | 170 | 240 | ||||
| 4 | 170 | |||||
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?
multiple choice
-
Project A
-
Project B
-
Both
-
Neither
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Challenging Global Finance
Authors: Elizabeth Friesen
2012th Edition
0230348793, 978-0230348790
