Question
The following are the cash flows of two projects: Year Project A Project B 0 $ (220 ) $ (220 ) 1 100 120 2
- The following are the cash flows of two projects:
| Year | Project A | Project B | ||||
| 0 | $ | (220 | ) | $ | (220 | ) |
| 1 |
| 100 |
|
| 120 |
|
| 2 |
| 100 |
|
| 120 |
|
| 3 |
| 100 |
|
| 120 |
|
| 4 |
| 100 |
|
|
|
|
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.)
b. Suppose that you can choose only one of these projects. Which would you choose?
Project A or Project B or Neither
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The Theory Of Stock Speculation
Authors: Arthur Crump
1st Edition
B00AKTZONO
