Use the table for the question(s)below.
Consider the following two projects:

-The net present value (NPV)of project B is closest to:
A)3.3
B)2.0
C)4.5
D)5.0

Question

Use the table for the question(s)below.
Consider the following two projects:
 
-The net present value (NPV)of project B is closest to:
A)3.3 
B)2.0 
C)4.5 
D)5.0

Quizplus · Accepted Answer

The NPV of Project B is calculated by discounting the cash flows at a rate of 10%. The NPV for Project B is $4.5 million, which is the highest among all the projects. Therefore, Project B is the best choice.

Use the Table for the Question(s)below