The following are the cash flows of two projects: Year Project A Project B 0 $260 $260
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Question:
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.) |
Project | NPV |
A | $ |
B | $ |
b. | Suppose that you can choose only one of these projects. Which would you choose? | |||
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