St. Rose Hospital expects Projects A and B to generate the following cash flows:
a. Determine the NPV for both projects using a cost of capital of 20 percent.
b. Determine the NPV for both projects using a cost of capital of 10 percent.
c. At a 10 percent cost of capital, which project should be accepted? At a 20 percent cost of capital, which project should be accepted? Explain.
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