The following are the cash flows of two projects: Year Project A Project B 0 $ (370
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Question:
The following are the cash flows of two projects:
Year Project A Project B 0 $ (370 ) $ (370 ) 1 200 270 2 200 270 3 200 270 4 200
a.Calculate the NPV for both projects if the discount rate is 10%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Project NPV
project A
Project B
b.Suppose that you can choose only one of these projects. Which would you choose?
- Project B
- Project A
- Neither
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