Question
The following are the cash flows of two projects: Year Project A Project B 0 $390 $390 1 220 290 2 220 290 3 220
| The following are the cash flows of two projects: |
| Year | Project A | Project B |
| 0 | $390 | $390 |
| 1 | 220 | 290 |
| 2 | 220 | 290 |
| 3 | 220 | 290 |
| 4 | 220 |
| a. | If the opportunity cost of capital is 12%, 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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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
ISBN: 1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
