The following are the cash flows of two projects: (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Year Project A Project B

0 $(340) $(340)

1 170 240

2 170 240

3 170 240

4 170

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.)

b.Which of these projects is worth pursuing?

• Project A
• Project B
• Both
• Neither

The following are the cash flows of two projects:

Year Project A Project B

0 $(370) $(370)

1 200 270

2 200 270

3 200 270

4 200

a.Calculate the NPV for both projects if the discount rate is 10%.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

b.Suppose that you can choose only one of these projects. Which would you choose?

• Project B
• Project A
• Neither