Question
Year Project A Project B 0 – $60,000 – $60,000 1 20,500 18,200 2 15,600 24,400...
|
Year |
Project A |
Project B |
|
0 |
– $60,000 |
– $60,000 |
|
1 |
20,500 |
18,200 |
|
2 |
15,600 |
24,400 |
|
3 |
24,400 |
15,600 |
|
4 |
18,200 |
20,500 |
(b) If the required rate is 12%, what is the NPV for each of the projects? Which project will you choose if you apply the NPV rule?
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