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
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%.
b.Suppose that you can choose only one of these projects. Which would you choose?
- Project A
- Project B
- Neither
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
978-1439078082
