Question
The following are the cash flows of two independent projects: Year Project A Project B 0 $ (390 ) $ (390 ) 1 220 290
The following are the cash flows of two independent projects:
Year Project A Project B
0 $ (390 ) $ (390 )
1 220 290
2 220 290
3 220 290
4 220
a.If the opportunity cost of capital is 12%, 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?
- Project A
- Project B
- Both
- Neither
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
