Question
The following are the cash flows of two projects: Year Project A Project B 0 $(360) $(360) 1 190 260 2 190 260 3 190
The following are the cash flows of two projects:
Year Project A Project B
0 $(360) $(360)
1 190 260
2 190 260
3 190 260
4 190
a. Calculate the NPV for both projects if the discount rate is 12%. Round 2 decimal places
Project NPV
a
b
b. Suppose that you can choose only one of these projects. Which one would you choose?
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
