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The following are the cash flows of two projects: Year Nam Project A $ (370) 200 200 200 200 Project B $ (370) 270 270 270 a.

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Answer #1

1.
NPV=Sum of Present Value of all Cash Flows

A=-370+200/1.1+200/1.1^2+200/1.1^3+200/1.1^4=263.9730893

B=-370+270/1.1+270/1.1^2+270/1.1^3=301.4500376

2.
Accept higher NPV project
Project B

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