Question
The following are the cash flows of two projects: Year Project A Project B 0 $(310) $(310) 1 140 210 2 140 210 3 140
The following are the cash flows of two projects:
Year Project A Project B
0 $(310) $(310)
1 140 210
2 140 210
3 140 210
4 140
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 A
Project B
b.Suppose that you can choose only one of these projects. Which would you choose?
Project B
Project A
Neither
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
