The following are the cash flows of two projects: Year Project A Project B 0 $ (330 ) $ (330 ) 1 160 230 2 160 230 3 160 230 4 160 a. Calculate the NPV for both projects if the discount rate is 12%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Suppose that you can choose only one of these projects. Which would you choose? multiple choice Project B Project A Neither

The following are the cash flows of two projects: Year Project A Project B 0 $ (330 ) $ (330 ) 1 160 230 2 160 230 3 160 230 4 160 a. Calculate the NPV for both projects if the discount rate is 12%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Suppose that you can choose only one of these projects. Which would you choose? multiple choice Project B Project A Neither

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.4IP

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