A corporation is in the process of choosing the better of two equal-risk, mutually exclusive...
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Accounting
A corporation is in the process of choosing the better of two equal-risk, mutually exclusive investment projects - project A, and project B. The relevant cash flows for each project are shown in the following table. The corporations cost of capital for similar projects is 15%.
| Year | Project A | Project B |
| 0 | -29,000 | -27,000 |
| 1 | 10,000 | 11,000 |
| 2 | 10,000 | 10,000 |
| 3 | 10,000 | 9,000 |
| 4 | 10,000 | 8,000 |
(b). Calculate the net present value for each project
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