The following are the cash flows of two projects:
The following are the cash flows of two projects:
Year Project A Project B
0 −$260 −$260
1 140 160
2 140 160
3 140 160
4 140
a. Calculate the NPV for both projects if the discount rate is 11%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Project NPV
A $
B $
b. Suppose that you can choose only one of these projects. Which would you choose?
Project A
Project B
Neither