What is the net present worth of the preferred project

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A firm is considering two projects with the following cash flows and internal rates of return. If the firm's MARR is 15%, should it select project A, project B, or neither? It cannot select both the projects.

Project A

Year 0: -12

Year 1: 0

Year 2: 16

Project B

Year 0: X

Year 1: 0

Year 2: 12

The IRR for Project A is 12.32% and that of Project B is 16.83%.

What is the net present worth of the preferred project?

Reference no: EM131852401

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