# NPV for both projects

The following are the cash flows of two projects:

Year Project A Project B

0 ?$340 ?$340

1 170 240

2 170 240

3 170 240

4 170

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a. Calculate the NPV for both projects if the discount rate is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project NPV

A = $ ________

B = $________

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

Project A

Project B

https://brainmass.com/business/net-present-value/npv-both-projects-455473

#### Solution Preview

The following are the cash flows of two projects:

Year Project A Project B

0 ?$340 ?$340

1 170 240

2 ...

#### Solution Summary

The solution helps in computing NPV for both projects.