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The following are the cash flows of two projects: Year Project A Project B 0 ?$330        ?$330        1 160        230        2 160...

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Finance

The following are the cash flows of two projects:
YearProject AProject B
0?$330       ?$330       
1160       230       
2160       230       
3160       230       
4160       
a.Calculate the NPV for both projects if the opportunity cost ofcapital is 17%. (Do not round intermediate calculations.Round your answers to 2 decimal places.)
ProjectNPV        
A$   
B  


b.Suppose that you can choose only one of these projects. Whichwould you choose?
Project A
Project B
Neither

Answer & Explanation Solved by verified expert
3.9 Ratings (636 Votes)
Net Present Value NPV of PROJECTA Period Annual Cash Flow Present Value factor at 17 Present Value of Cash Flow 1 160 085470 13675 2 160 073051 11688 3 160    See Answer
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Transcribed Image Text

The following are the cash flows of two projects:YearProject AProject B0?$330       ?$330       1160       230       2160       230       3160       230       4160       a.Calculate the NPV for both projects if the opportunity cost ofcapital is 17%. (Do not round intermediate calculations.Round your answers to 2 decimal places.)ProjectNPV        A$   B  b.Suppose that you can choose only one of these projects. Whichwould you choose?Project AProject BNeither

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