Question: A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows for

A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows for each project are shown below:

Year 0 1 2 3 4
Project A -19.00 9.00 7.00 7.00 4.00
Project B -31.00 13.00 12.00 11.00 8.00

The cost of capital for the firm is 9.00%.

What is the NPV of project B at the cost of capital?

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