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Calculate the npv for both projects

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Reference no: EM132459105

Problem: The following are the cash flows of two projects:

Year Project A Project B

0 $(230) $(230)

1  110   130 

2  110   130

 3  110   130 

4  110    

a. Calculate the NPV for both projects if the opportunity cost of capital is 16%.

The following are the cash flows of two projects:

Year Project A Project B

0 $(210) $(210)

1  90   110

 2  90   110 

3  90   110

4  90    

B. If the opportunity cost of capital is 12%, what is the profitability index for each project?

Reference no: EM132459105

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