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You've estimated the following cash flows (in $) for two projects: Year Project A Project B...

You've estimated the following cash flows (in $) for two projects:

Year Project A Project B
0 -5,100 -7,650
1 1,325 1,325
2 2,148 2,148
3 3,444 6,967

The required return for both projects is 8%.

What is the NPV for project A?

What is the NPV for project B?

Which project seems better according to the NPV method?

Project A or Project B

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