Question
The following are the cash flows of two projects: YearProject AProject year 0$(250) year1 $1302$1303.$1304$130 b Project year 0$250 year 1 $ 150 year 2
The following are the cash flows of two projects:
YearProject AProject year 0$(250) year1 $1302$1303.$1304$130
b Project year 0$250 year 1 $ 150 year 2 $150 year 3 $150
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?
multiple choice
- Project A
- Project B
- Neither
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
