You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. You should accept Project _____ because its net present value exceeds that of the other project by _____.
A) A; $418.02
B) A; $897.13
C) B; $656.94
D) B; $778.11
E) B; $813.27

Question

You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.   You should accept Project _____ because its net present value exceeds that of the other project by _____.
A) A; $418.02 
B) A; $897.13 
C) B; $656.94 
D) B; $778.11 
E) B; $813.27

Quizplus · Accepted Answer

The Answer of You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.   You should accept Project _____ because its net present value exceeds that of the other project by _____.
A) A; $418.02 
B) A; $897.13 
C) B; $656.94 
D) B; $778.11 
E) B; $813.27

You Are Considering the Following Two Mutually Exclusive Projects with the Following