Question
The following are the cash flows of two projects: Year Project A Project B 0 $ (360 ) $ (360 ) 1 190 260 2
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. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. Which of these projects is worth pursuing?
Project A
Project B
Both
Neither
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Multinational Finance
Authors: Kirt Butler
2nd Edition
0324004508, 978-0324004502
