Use the table for questions 18 and 19 below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Cash Elow. Cash Elow. Cash Cash, Elow Cash Elaw. Discount Project Flow Rate A -78 20 40 60 .105 -86 37 24 24 46 .105 Question 18 The NPV of project A is closest to: a) 16.0 b) 34.6 c) 39.3 d) 41.6 Answer. Question 19 The NPV of project B is closest to: a) 33.3 b) 43.3 c) 44.6 d) 54.3

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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Use the table for questions 18 and 19 below. Consider the following two projects:
Year 0
Year 1
Year 2
Year 3
Year 4
Cash
Elow.
Cash
Elow
Cash
Flow
Cash
Cash
Elow
Discount
Project
Flow
Rate
A
-78
20
40
60
.105
B
-86
37
24
24
46
105
Question 18
The NPV of project A is closest to:
a) 16.0
b) 34.6
c) 39.3
d) 41.6
Answer.
Question 19
The NPV of project B is closest to:
a) 33.3
b) 43.3
c) 44.6
d) 54.3
Transcribed Image Text:Use the table for questions 18 and 19 below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Cash Elow. Cash Elow Cash Flow Cash Cash Elow Discount Project Flow Rate A -78 20 40 60 .105 B -86 37 24 24 46 105 Question 18 The NPV of project A is closest to: a) 16.0 b) 34.6 c) 39.3 d) 41.6 Answer. Question 19 The NPV of project B is closest to: a) 33.3 b) 43.3 c) 44.6 d) 54.3
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