Question: Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 -103 -103 1 33 52

Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 -103 -103 1 33 52 2 53 52 3 73 52 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 12% ? Note: 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 4% a-2. Which project would you choose? Project A b-1. NPV of each project if the opportunity cost of capital is 12% b-2. Which would you choose? Project B

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