Question: Here are the cash - flow forecasts for two mutually exclusive projects: Year Cash Flows ( dollars ) Project A Project B 0 1 1

Here are the cash-flow forecasts for two mutually exclusive projects:
Year Cash Flows (dollars)
Project A Project B
0112112
14261
26261
38261
a-1. What is the NPV of each project if the opportunity cost of capital is 3%?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
a-2. Which project would you choose?
b-1. What is the NPV of each project if the opportunity cost of capital is 10%?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
b-2. Which would you choose?

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