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The following are the cash flows of two projects: Year Project A Project B 0 $(260) $(260) 1 140 160 2 140 160 3 140

The following are the cash flows of two projects:

Year Project A Project B

0 $(260) $(260)

1 140 160

2 140 160

3 140 160

4 140

a.Calculate the NPV for both projects if the discount rate is 11%.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

b.Suppose that you can choose only one of these projects. Which would you choose?

  • Project A
  • Project B
  • Neither

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