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The following are the cash flows of two projects: Year Project A Project B 0 $220 $220 1 100 120 2 100 120 3 100
| The following are the cash flows of two projects: |
| Year | Project A | Project B |
| 0 | $220 | $220 |
| 1 | 100 | 120 |
| 2 | 100 | 120 |
| 3 | 100 | 120 |
| 4 | 100 | |
| 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.) |
| Project | NPV |
| A | $ |
| B | |
| b. | Which of these projects is worth pursuing? | ||||||||
|
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Handbook Of European Financial Markets And Institutions
Authors: Xavier Freixas, Philipp Hartmann, Colin Mayer
1st Edition
0199229953, 978-0199229956
