You have been assigned the task of evaluating two mutually
exclusive projects with the following projected cash flows:
YEAR PROJECT A CASH FLOW PROJECT B CASH
FLOW
0 ------------- -100,000 --------------- -100,000
1 --------------- 33,000 --------------- 0
2 --------------- 33,000 --------------- 0
3 --------------- 33,000 --------------- 0
4 --------------- 33,000 --------------- 0
5 --------------- 33,000 --------------- 210,000
If the appropriate discount rate on these projects is 12
percent, which would be chosen and why?
1. What is the NPV of...