Below are two potential investment alternatives:

-Assume straight-line amortization in all computations, and ignore income taxes. The net present value in case Y is
A) $80,000.
B) $12,144.
C) $(328).
D) $123,056.

Question

Below are two potential investment alternatives:
  
-Assume straight-line amortization in all computations, and ignore income taxes. The net present value in case Y is
A) $80,000. 
B) $12,144. 
C) $(328). 
D) $123,056.

Quizplus · Accepted Answer

The correct answer is B because the net present value in case Y is $12,144.

Below Are Two Potential Investment Alternatives