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The following are the cash flows of two projects: Year Project A Project B 0 $240 $240 1 120 140 2 120 140 3 120
The following are the cash flows of two projects: Year Project A Project B 0 $240 $240 1 120 140 2 120 140 3 120 140 4 120 a. Calculate the NPV for both projects if the discount rate is 12%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project NPV A $ B b. Suppose that you can choose only one of these projects. Which would you choose? Project A Project B Neither
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