Randy has two Term policies she would like to compare. The premiums she would pay each year for each policy are shown below. Calculate the NPV at a 6 percent after-tax discount rate. Which one should she select and why?

Year	A ($)	B ($)
0	225	300
1	275	310
2	350	320
3	400	330
4	500	340

Answer rating: 100% (QA)

To compare the two Term policies we need to calculate the Net Present Value NPV of the cash flows as... View the full answer