Question: Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 ? 109 ? 109 1 39
Here are the cash-flow forecasts for two mutually exclusive projects:
| Cash Flows (dollars) | ||||||||
| Year | Project A | Project B | ||||||
| 0 | ? | 109 | ? | 109 | ||||
| 1 | 39 | 58 | ||||||
| 2 | 59 | 58 | ||||||
| 3 | 79 | 58 | ||||||
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.)
b-1. What is the NPV of each project if the opportunity cost of capital is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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