Question: Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B - 113 - 113 43 62 62

Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B - 113 - 113 43 62 62 62 63 83 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 12%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which would you choose? Project A Project B a-1. NPV of each project if the opportunity cost of capital is 2% a-2. Which project would you choose? b-1. NPV of each project if the opportunity cost of capital is 12% b-2. Which would you choose
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
