Question
The following are the cash flows of two projects: Year Project A Project B 0 $ (250 ) $ (250 ) 1 130 150 2
The following are the cash flows of two projects:
| Year | Project A | Project B | ||||
| 0 | $ | (250 | ) | $ | (250 | ) |
| 1 | 130 | 150 | ||||
| 2 | 130 | 150 | ||||
| 3 | 130 | 150 | ||||
| 4 | 130 | |||||
a. Calculate the NPV for both projects if the discount rate is 10%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. Suppose that you can choose only one of these projects. Which would you choose?
Project A
Project B
Neither
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
