The following are the cash flows of two projects:
The following are the cash flows of two projects:
Year Project A Project B
0 −$320 −$320
1 150 220
2 150 220
3 150 220
4 150
a.
If the opportunity cost of capital is 11%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Project NPV
A $
B
b. Which of these projects is worth pursuing?
Project A
Project B
Both