# The following are the cash flows of two projects: YearProject AProject B0\$(400)\$(400)1 230  300 2 230  300 3 230  300 4 230      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.)     b. Suppose that you can choose only one of these projects. Which would you choose?  Project BProject ANeither

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The following are the cash flows of two projects:

 Year Project A Project B 0 \$ (400 ) \$ (400 ) 1 230 300 2 230 300 3 230 300 4 230

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.)

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

• Project B
• Project A
• Neither

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Step 1

a)

NPV for Project A and project B is \$329.07 and \$346.06.

Computation of NPV:

Step 2

Excel workings:

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