Which of these projects is worth


The following are the cash flows of two projects:

Year Project A Project B
0 $290 $290
1 170 190
2 170 190
3 170 190
4 170

a. If the opportunity cost of capital is 11%, calculate 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?

 

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Finance Basics: Which of these projects is worth
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