Asked by Bui Huyen Trang (K13_HN) on Jun 12, 2024
Verified
The net present value of Project A is:
A) $51,000
B) $60,120
C) $55,560
D) $94,450
Project A
Not a definitive key term without additional context; it likely refers to a specific, named project within a given context. NO.
Net Present Value
The gap between how much cash comes in and goes out, measured in present value terms, during a certain period.
- Attain the ability to compute the net present value (NPV) of differing projects.
Verified Answer
XM
Xycladi MartinezJun 13, 2024
Final Answer :
B
Explanation :
The project with the highest net present value (NPV) is the best choice. In this case, Project B has the highest NPV of $60,120, so it should be chosen. Project A has a lower NPV of $51,000 and Project C has an even lower NPV of $55,560. Project D has the highest absolute NPV, but it also requires the highest initial investment and has a longer payback period. Therefore, it may not be the best choice for the company.
Explanation : 
Learning Objectives
- Attain the ability to compute the net present value (NPV) of differing projects.