Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Project A - 115 Project B - 115 Year 45 64 65 64 85 64 a-1. What is the NPV of each project if the opportunity cost of capital is 2%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project would you choose? b-1. What is the NPV of each project if the opportunity cost of capital is 14%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which would you choose?

Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Project A - 115 Project B - 115 Year 45 64 65 64 85 64 a-1. What is the NPV of each project if the opportunity cost of capital is 2%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project would you choose? b-1. What is the NPV of each project if the opportunity cost of capital is 14%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which would you choose?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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