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The following are the cash flows of two projects: Year Project A Project B 0 $220 $220 1 100 120 2 100 120 3 100
| The following are the cash flows of two projects: |
| Year | Project A | Project B |
| 0 | $220 | $220 |
| 1 | 100 | 120 |
| 2 | 100 | 120 |
| 3 | 100 | 120 |
| 4 | 100 | |
| a. | If the opportunity cost of capital is 10%, 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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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
