[All Steps] A company is analyzing 2 mutually exclusive projects, A and B, whose cash flows are shown below: 0 1 2 3 4 A -$2,000 $200 $1,900 $310 $100 B
Question: A company is analyzing 2 mutually exclusive projects, A and B, whose cash flows are shown below:
0 1 2 3 4
A -$2,000 $200 $1,900 $310 $100
B -1,700 $600 $600 $600 $600
The company’s cost of capital is 8%. What is the NPV of each of these investments and which one would you choose? Why?
Deliverable: Word Document 