Table 12.6
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent.
-The annualized NPV of Project A is ________. (See Table 12.6)
A) $22,674
B) $12,947
C) $38,227
D) $21,828

Question

Table 12.6
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. 
-The annualized NPV of Project A is ________. (See Table 12.6)
A) $22,674 
B) $12,947 
C) $38,227 
D) $21,828

Quizplus · Accepted Answer

The correct choice is $22,674, which is the annualized NPV of Project A as per the given data in Table 12.6.

Table 12.6 Yong Importers, an Asian Import Company, Is Evaluating Two Mutually