Question
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.Calculate the NPV for both projects if the opportunity cost of capital is 16%.(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?
- Neither
- Project A
- Project B
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Managerial economics applications strategy and tactics
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
12th Edition
9781133008071, 1439079234, 1133008070, 978-1439079232
