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You are considering two mutually exclusive investment opportunities: Year 0 Year 1 Year 2 Project Cash Flow Cash Flow Cash Flow Discount Rate A -$29,000
You are considering two mutually exclusive investment opportunities: Year 0 Year 1 Year 2 Project Cash Flow Cash Flow Cash Flow Discount Rate A -$29,000 $35,000 $10,000 8% B -$210,000 $30,000 $290,000 9% With the given annual cash flow schedule, what are the NPVs of project A and project B? A. NPV for Project A: $19,980.8; NPV for Project B: $31,610.1 B. NPV for Project A: $11,980.8; NPV for Project B: $61,610.1 C. NPV for Project A: $22,632.2; NPV for Project B: $20,928.2 D. NPV for Project A: $15,632.2; NPV for Project B: $50,928.2
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