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The following are the cash flows of two projects: Year Project A Project B 0 $380 $380 1 210 280 2 210 280 3 210

The following are the cash flows of two projects:

Year Project A Project B

0 $380 $380

1 210 280

2 210 280

3 210 280

4 210

a. If the opportunity cost of capital is 11%, calculate 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 if you have enough funds and they are not mutually exclusive?

Project A Project B Both

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