14

14.1
Consider the following two projects:
 

  Year 0 Year 1 Year 2 Year 3
A -40 20 -10 40
B -100 60 0 70

The opportunity cost of capital for both projects is 10%.
 
 

  1. What is the NPV of each project? Which project would you take if you could only take one? (2 pts)

     

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