The following are the cash flows of two independent projects: Year Project A Project B 0 $ (370 ) $ (370 ) 1 200 270 2 200 270 3 200 270 4 200 a. If the opportunity cost of capital is 10%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Which of these projects is worth pursuing?

The following are the cash flows of two independent projects: Year Project A Project B 0 $ (370 ) $ (370 ) 1 200 270 2 200 270 3 200 270 4 200 a. If the opportunity cost of capital is 10%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Which of these projects is worth pursuing?

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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