List npv of higher npv project of computer safeguard systems

Reference no: EM13334932

Virus Stopper Inc., a supplier of computer safeguard systems, uses a cost of capital of 10 percent to evaluate average-risk projects, and it adds or subtracts 2 percentage points to evaluate projects of more or less risk. Currently, two mutually exclusive projects are under consideration. Both have a cost of $ 305 and will last 4 years. Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 85 . Project B, of less than average risk, will produce cash flows of $ 276 at the end of Years 3 and 4 only. To the nearest .01, list the NPVof the higher NPVproject.

Reference no: EM13334932

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