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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. | If the opportunity cost of capital is 11%, calculate NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Project | NPV |
| A | $ |
| B | |
| b. | Which of these projects is worth pursuing if you have enough funds and they are not mutually exclusive? |
|
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Company Accounting
Authors: Ken Leo, Jeffrey Knapp, Susan Mcgowan, John Sweeting, Leah Meng
12th Edition
0730382672, 9780730382676
