The net present value (NPV) of project A is closest to ________

Consider the following two projects:

Project
Year 0
Cash Flow Year 1
Cash Flow Year 2
Cash Flow Year 3
Cash Flow Year 4
Cash Flow Discount
Rate
A -100 40 50 60 N/A 0.11
B -73 30 30 30 30 0.11

A) 20.5
B) 22.5
C) 25.6
D) 51.2


Answer: A

Business

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