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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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