Question
The following are the cash flows of two independent projects: Year Project A Project B 0 $(370) $(370) 1 200 270 2 200 270 3
The following are the cash flows of two independent projects:
Year Project A Project B
0 $(370) $(370)
1 200 270
2 200 270
3 200 270
4 200
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.)
Project NPV
Project A ?
Project B ?
b.Which of these projects is worth pursuing?
- Project A
- Project B
- Both
- Neither
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
