The Blake Computer Business is trying to choose between the following two mutually exclusive projects:(note...

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Finance

The Blake Computer Business is trying to choose between the following two mutually exclusive projects:(note this may be done in Excel!)

Year A B

0 -$40,000 -$15,000

1 $21,000 $8,500

2 $21,000 $8,500

3 $21,000 $8,500

The cost of capital is 10%.

a.Calculate the NPVof each investment.

b.Assess the acceptability of each project based on theresult in (a).

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