The following are the cash flows of two projects:

Year Project A Project B

0 $(280) $(280)

1 160 180

2 160 180

3 160 180

4 160

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.)

NPV

Project A ?

Project B ?

b.Suppose that you can choose only one of these projects. Which would you choose?

• Project A
• Project B
• Neither