Question
The following are the cash flows of two independent projects: YearProject AProject B 0$(370)$(370) 1200270 2200270 3200270 4200 a. If the opportunity cost of capital
The following are the cash flows of two independent projects:
YearProject AProject B
0$(370)$(370)
1200270
2200270
3200270
4200
a. If the opportunity cost of capital is 10%, calculate the NPV for both projects.
Project NPV
Project A?
Project B?
b. Which of these projects are worth pursuing?
Project A or Project B?
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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
