Question: Here are the cash-flow forecasts for two mutually exclusive projects: Year Cash Flows (dollars) Project A Project B 0 110 110 1 40 59 2

Here are the cash-flow forecasts for two mutually exclusive projects:

Year Cash Flows (dollars)
Project A Project B
0 110 110
1 40 59
2 60 59
3 80 59

a-1. What is the NPV of each project if the opportunity cost of capital is 4%?

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?

Please answer A-1 and B-1.

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