The following are the cash flows of two independent projects:

Year Project A Project B

0 $(280) $(280)

1 $160 $180

2 $160 $180

3 $160 $180

4 $160

a.If the opportunity cost of capital is 10%, calculate the NPV for both projects.

b.Which of these projects is worth pursuing?

• Project A
• Project B
• Both
• Neither

a.If the opportunity cost of capital is 10%, calculate the NPV for both projects.