If WiseGuy Inc is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 7%, which should the company choose?

Project A Project B
Time 0 -10,000 -10,000
Time 1 5,000 4,000
Time 2 4,000 3,000
Time 3 3,000 10,000

A) Project A
B) Project B
C) Neither project — both have negative NPV.
D) Both projects — both have positive NPV.


Answer: B

Business

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Which of the following is the correct formula for B7?



a) =-B2/B3
b) =FAME_Payback(B2:B6)
c) =FAME_Payback(B2:B6,0)
d) All of the above

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What will be an ideal response?

Business

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Business