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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
| 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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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
