The following are the cash flows of two projects:   Year Project A Project B 0 $ (330 ) $ (330 ) 1   160     230   2   160     230   3   160     230   4   160             a. Calculate the NPV for both projects if the discount rate is 12%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)           b. Suppose that you can choose only one of these projects. Which would you choose?   multiple choice Project B Project A Neither

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The following are the cash flows of two projects:

 

Year Project A Project B
0 $ (330 ) $ (330 )
1   160     230  
2   160     230  
3   160     230  
4   160        
 

 

a. Calculate the NPV for both projects if the discount rate is 12%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

 

 

 

 

b. Suppose that you can choose only one of these projects. Which would you choose?

 

multiple choice

  • Project B
  • Project A
  • Neither

 

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