Question
The following are the cash flows of two independent projects: YearProject AProject year 0$(260) year1140year2140year3140year4140 [project b yearB0$(260) year 1 160 year 2 160 year
The following are the cash flows of two independent projects:
YearProject AProject year 0$(260) year1140year2140year3140year4140
[project b yearB0$(260) year 1 160 year 2 160 year 3 160
a.If the opportunity cost of capital is 11%, 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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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
