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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

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.

$2.19