Question: Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 117 117 1 47 66 2
Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 117 117 1 47 66 2 67 66 3 87 66 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? Project A Project B 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.) b-2. Which would you choose? Project A Project B
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