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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. | If the opportunity cost of capital is 11%, calculate the 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? | ||||
|
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
