Use the table for the question(s) below.

-If the risk-free interest rate is 10%,then of the four projects listed,if you could only invest in one project,which one would you select?
A) Eenie
B) Meenie
C) Minie
D) Moe

Question

Use the table for the question(s) below.
 
-If the risk-free interest rate is 10%,then of the four projects listed,if you could only invest in one project,which one would you select?
A) Eenie 
B) Meenie 
C) Minie 
D) Moe

Quizplus · Accepted Answer

A) Eenie has highest NPV
NPV Eenie = -10 + 15 / 1.1 = 3.64
NPV Meenie = 10 - 8 / 1.1 = 2.73
NPV Minie = -15 + 20 / 1.1 = 3.18
NPV moe = 10 - 15 / 1.1 = -3.64

Use the Table for the Question(s) Below