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The following are the cash flows of two projects: Year Project A Project B 0 $350 $350 1 180 250 2 180 250 3 180
The following are the cash flows of two projects: |
Year | Project A | Project B |
0 | $350 | $350 |
1 | 180 | 250 |
2 | 180 | 250 |
3 | 180 | 250 |
4 | 180 | |
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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