Question: Zebra Inc. is considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the

Zebra Inc. is considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Required return is 10 percent for Project A and 13 percent for Project B. Calculate the Net Present Value (NPV) of each project. Which one would Zebra choose? Why? Show your work!

	Project A		Project B
Year	Cash Flow	Year	Cash Flow
0	-$75,000	0	-$70,000
1	$19,000	1	$10,000
2	$48,000	2	$16,000
3	$12,000	3	$72,000

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