Question
The following are the cash flows of two projects: Year Project A Project B 0 $ (260 ) $ (260 ) 1 140 160 2
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 opportunity cost of capital is 16%. (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 A
Project B
Neither
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Options Trading For Beginners
Authors: Mike Hartley
1st Edition
979-8864514832
