What is the NPV of the project if it is expanded?
A) $100,000
B) $500,000
C) $300,000
D) $600,000

Name: What is the NPV of the project if it is expanded? A) $100,000 B) $500,000 C) $300,000 D) $600,000
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Quizplus · Accepted Answer

According to the information given, the NPV of the project is currently $200,000. If the project is expanded, the additional cost will be $500,000 and the NPV will increase by $100,000. Therefore, the new NPV will be $300,000. Option C is the best choice as it represents the highest NPV.

What Is the NPV of the Project If It Is