Question: Here are the cash-flow forecasts for two mutually exclusive projects: Year Cash Flows (dollars) Project A Project B 104 104 34 53 54 53 74

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

Here are the cash-flow forecasts for two mutually exclusive projects: Year Cash Flows (dollars) Project A Project B 104 104 34 53 54 53 74 53 2 3 a-1. What is the NPV of each project if the opportunity cost of capital is 2%? (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 14%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which would you choose? Project A Project B a-2. NPV of each project if the opportunity cost of capital is 2% Which project would you choose? NPV of each project if the opportunity cost of capital is 14% Which would you choose? b-1. b-2

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