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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

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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