You've estimated the following cash flows (in $) for two projects: Year...
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Finance
You've estimated the following cash flows (in $) for two projects:
| Year | Project A | Project B |
| 0 | -5,400 | -8,100 |
| 1 | 1,325 | 1,325 |
| 2 | 2,148 | 2,148 |
| 3 | 3,942 | 7,751 |
The required return for both projects is 8%.
A:What is the NPV for project A?
B:What is the NPV for project B?
C:Which project seems better according to the NPV method?
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