Consider two projects: Project A currently costs $14 million, which is to be paid this year. The returns are $9 million in one year and $7 million in two years. Project B currently costs $11 million, again to be paid this year. The returns are $7 million in one year and $6 million in two years.

At an interest rate of 10%, the net present value of Project A is roughly , while the net present value of Project B is roughly .

Project A Options:

-0.03 million

0.54 million

-0.89 million

2.00 million

13.97 million

Project B Options:

0.32 million

0.81 million

1.22 million

2.00 million

11.32 million