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The following are the cash flows of two projects: Year Project A Project B 0 $250 $250 1 130 150 2 130 150 3 130
| The following are the cash flows of two projects: |
| Year | Project A | Project B |
| 0 | $250 | $250 |
| 1 | 130 | 150 |
| 2 | 130 | 150 |
| 3 | 130 | 150 |
| 4 | 130 | |
| 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.) |
| Project | NPV |
| A | $ |
| B | |
| b. | Suppose that you can choose only one of these projects. Which would you choose? | ||||||
|
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
