If the discount rate is 15%,then which alternative should the owner choose:
A)#1
B)#2
C)#3
D)either #1 or #2
E)either #1 or #3

Name: If the discount rate is 15%,then which alternative should the owner choose: A)#1 B)#2 C)#3 D)either #1 or #2 E)either #1 or #3
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

A)NPV_#1 = $350,000 (No TVM here) NPV_#2 = -50,000 + 11ea7cce_3c17_7992_928c_8b000ebe3df4_TB1626_11 = 341,304 NPV_#3= -40,000 + 11ea7cce_3c17_7993_928c_1549932744d4_TB1626_11 = 329,565 Correct answer is #1 with NPV of 350,000.

If the Discount Rate Is 15%,then Which Alternative Should the Owner