Exercise Remember, you do not have to be an accountant to pas the exam. You do not have to use accounting formulas (aside, pos~ihly, from a couple of present value questions). But you do need to have a general understanding of what the term~ mean. So, test yourself! For each row in th<•

following chart, enter the letter of the proiect you would select b.ised on the inform.1t1on provided.

Project A Net present value $95,000 IRR 13 percent Payback period 16 month~
Benefit-cost ratio 2.79 Project B $75,000 17 percent 21 months 1.3