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You've estimated the following cash flows (in $) for two projects: Year Project A Project B 0 -5,500 -8,250 1 1,325 1,325 2 2,148 2,148

You've estimated the following cash flows (in $) for two projects: Year Project A Project B 0 -5,500 -8,250 1 1,325 1,325 2 2,148 2,148 3 4,076 7,918 The required return for both projects is 8%. . Part 1 What is the NPV for project A? . Part 2 What is the NPV for project B? . Part 3 Which project seems better according to the NPV method? Project B Project A

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