Question: You have two projects. Project A costs $100 and will generate a cash flow of $120 in a year. Project B costs $50 and will

You have two projects. Project A costs $100 and will generate a cash flow of $120 in a year. Project B costs $50 and will generate a cash flow of $65 in a year. The cost of capital for both projects is 10%.

a) what is NVP and IRR for both Project A and Project B?

b) Which project would you choose?

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