Consider the following two projects: The net present value (NPV) for project beta is closest to ________.
A) $21.67
B) $14.45
C) $18.06
D) $12.64

Question

Consider the following two projects:  The net present value (NPV) for project beta is closest to ________.
A) $21.67 
B) $14.45 
C) $18.06 
D) $12.64

Quizplus · Accepted Answer

C) NPV = -80 + 25 / (1 + 0.17)¹ + 25 / (1 + 0.17)² + 25 / (1 + 0.17)³ + 25 / (1 + 0.17)⁴ 11ea84dc_f553_25ab_9a63_4bfa2f460498_TB1316_11_TB1316_11 11ea84dc_f553_25ac_9a63_0b183f69a8e4_TB1316_11_TB1316_11 11ea84dc_f553_25ad_9a63_4da6b7b6c490_TB1316_11_TB1316_11 = $18.06

Consider the Following Two Projects: the Net Present Value