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You have been assigned the task of evaluating two mutually exclusive projects with the following cash flows: Year Project B CF 0 1 2 3
You have been assigned the task of evaluating two mutually exclusive projects with the following cash flows: Year Project B CF 0 1 2 3 4 5 Project A CF (100,000) 33,000 33,000 33,000 33,000 33,000 (100,000) 0 0 0 0 220,000 Assume the appropriate discount rate on these projects is 10%. Calculate the NPV of both projects. Which one should we choose? Why
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