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You've estimated the following cash flows (in $) for two projects: Year: Project A, Project B 0: -5,700, -8,550 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: -5,700, -8,550
1: 1,325, 1,325
2: 2,148, 2,148
3: 4,360, 8,412
The equired return for both projects is 8%.
What is the NPV for project A?
What is the NPV for project B?
Which project seems better according to the NPV method?
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