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The following are the cash flows of two independent projects: Year Project A Project B 0 1 2 $(300) 180 180 180 180 Project Project A Project B a. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) $(300) 200 200 200 s NPV $193.79 141 91

The following are the cash flows of two independent projects: Year Project A Project B 0 1 2 $(300) 180 180 180 180 Project Project A Project B a. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) $(300) 200 200 200 s NPV $193.79 141 91

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The following are the cash flows of two independent projects: Year Project A Project B 0 $(300) 200 200 200 1 2 3 $(300) 180 180 180 180 a. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Project A Project B NPV $193.79 141.91 $ b. Which of these projects is worth pursuing? Project A Project B Both Neither
Transcribed Image Text:The following are the cash flows of two independent projects: Year Project A Project B 0 $(300) 200 200 200 1 2 3 $(300) 180 180 180 180 a. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Project A Project B NPV $193.79 141.91 $ b. Which of these projects is worth pursuing? Project A Project B Both Neither
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