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The following are the cash flows of two projects: Year Project A Project B 0 $400 $400 1 230 300 2 230 300 3 230
| The following are the cash flows of two projects: |
| Year | Project A | Project B |
| 0 | $400 | $400 |
| 1 | 230 | 300 |
| 2 | 230 | 300 |
| 3 | 230 | 300 |
| 4 | 230 | |
| 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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Housing Policy And Finance
Authors: John Black, David Stafford
1st Edition
0415004195, 978-0415004190
