60 N/A 30 30 30 175 .15 Use the table for the question(s) below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Discount Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate AB -100 -73 40 30 30 530 The NPV of project A is closest to: OA. $12.04 OB. $15.05 OC. $12.61 OD. $42.98

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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am. 111.

Use the table for the question(s) below.
Consider the following two projects:
Year 0
Year 1
Year 2
Year 3
Year 4
Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow
A
AB
B
100
-73
40
30
50
30
Discount
Rate
880
60
N/A
15
30
30
15
The NPV of project A is closest to:
OA. $12.04
OB. $15.05
OC. $12.61
OD. $42.98
Transcribed Image Text:Use the table for the question(s) below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A AB B 100 -73 40 30 50 30 Discount Rate 880 60 N/A 15 30 30 15 The NPV of project A is closest to: OA. $12.04 OB. $15.05 OC. $12.61 OD. $42.98
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