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From the image, it appears that you are tasked with calculating the Net Present Value (NPV) for two projects (A and B) over a span of four years. The cost of capital is given as 11.2%. Below is the cash flow information for the two projects:

- **Project A**:  
  Year 0: -$110  
  Year 1: $60  
  Year 2: $50  
  Year 3: $40  
  Year 4: $30  

- **Project B**:  
  Year 0: -$110  
  Year 1: $47  
  Year 2: $50  
  Year 3: $53  
  Year 4: $60  

### Questions:
1. What is the NPV of each project?
2. Which project should be chosen if only one can be selected?

I will now proceed with calculating the NPV for both projects using the provided cash flows and the cost of capital (11.2%).

The NPV formula is:
\[
\text{NPV} = \sum \frac{C_t}{(1+r)^t} - C_0
\]
Where:  
- $ C_t $ is the cash flow at time $ t $  
- $ r $ is the discount rate (11.2%)  
- $ C_0 $ is the initial investment (Year 0)

Let's calculate that.The Net Present Values (NPVs) for the two projects are:

- **NPV for Project A**: $33.1 (rounded to one decimal place)
- **NPV for Project B**: $50.5 (rounded to one decimal place)

Since Project B has a higher NPV, it would be the better investment based on maximizing NPV.

Would you like further details or clarifications on the calculation process?

### Follow-up questions:
1. How does the discount rate affect NPV calculations?
2. Why is NPV a reliable metric for comparing projects?
3. What happens to NPV if the cash flows change significantly in later years?
4. Could a project with a lower NPV ever be preferable under different criteria?
5. How would inflation impact the discount rate and thus the NPVs?

**Tip**: NPV helps account for the time value of money, showing how much future cash flows are worth today.

You are tasked with calculating the Net Present Value (NPV) for two projects (A and B) over a span of four years. The cost of capital is given as 11.2%. Below is the cash flow information for the two projects:

- **Project A**:  
  Year 0: -$110  
  Year 1: $60  
  Year 2: $50  
  Year 3: $40  
  Year 4: $30  

- **Project B**:  
  Year 0: -$110  
  Year 1: $47  
  Year 2: $50  
  Year 3: $53  
  Year 4: $60

Calculate the Net Present Value (NPV) for two projects using a discount rate of 11.2%. This example involves detailed cash flows for Project A and Project B, with solutions showcasing how NPV helps compare investments in finance. Ideal for finance students and professionals.

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