BUS 530 Homework 4 - Homework 4 The following are the cash flows of two projects Year 0 1 2 3 4 Project A $360 190 190 190 190 Project B $360 260 260

BUS 530 Homework 4 - Homework 4 The following are the cash...

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Homework 4 Year Project A Project B 0 −$360 −$360 1 190 260 2 190 260 3 190 260 4 190 a.If the opportunity cost of capital is 12%, calculate NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project NPV A $ 217.10 B 264.48 b. Which of these projects is worth pursuing? Both Explanation: b.Both projects are worth pursuing. The following are the cash flows of two projects: Year Project A Project B 0 −$240 −$240 1 120 140 2 120 140 The following are the cash flows of two projects:
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