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The following are the cash flows of two projects: Year Project A Project B 0 $320 $320 1 150 220 2 150 220 3 150
The following are the cash flows of two projects: |
Year | Project A | Project B |
0 | $320 | $320 |
1 | 150 | 220 |
2 | 150 | 220 |
3 | 150 | 220 |
4 | 150 | |
a. | If the opportunity cost of capital is 11%, 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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