12 13 Given the following information: 14 a) Which project A or B should be selected based 15 on the NPV analysis? Year Project A Project B 16 Firm's Cost of Capital 8% 10% 17 b) What is the NPV of the selected project? 18 Initial Investment 0 -32,000 -40,000 19 NPV 20 Year End cash flows 21 14,000 28,000 22 2 14,000 12,000 23 3 14,000 10,000 24 4 14,000 10,000 25 26