The net present value (NPV) for project beta is closest to ________

Consider the following two projects:

Project Year 0
C/F Year 1
C/F Year 2
C/F Year 3
C/F Year 4
C/F Year 5
C/F Year 6
C/F Year 7
C/F Discount
Rate
Alpha -79 20 25 30 35 40 N/A N/A 16%
Beta -80 25 25 25 25 25 25 25 17%

A) $21.67
B) $14.45
C) $18.06
D) $12.64


Answer: C

Business

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