Question: Suppose that you have the two projects as below: Project B Project A Year 200 1,000 1 600 800 2 800 600 3 1,200 200

Suppose that you have the two projects as below: 

Project B

Project A

Year

200

1,000

1

600

800

2

800

600

3

1,200

200

4

 

 

Each project has a cost of $ 2,000 and the total cost of capital is 10%. 

Determine which project should be accepted ?Using Net present value (NPV)

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