Question
The following are the cash flows of two projects: Year Project A Project B 0 $...
The following are the cash flows of two projects:
| Year | Project A | Project B | ||||
| 0 | $ | (390 | ) | $ | (390 | ) |
| 1 | 220 | 290 | ||||
| 2 | 220 | 290 | ||||
| 3 | 220 | 290 | ||||
| 4 | 220 | |||||
a. Calculate the NPV for both projects if the opportunity cost of capital is 17%.
Project A:
Project B:
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