Question: Based on the Net Present Worth method, which option should be chosen and why? Option A costs $400 and generates additional revenue (aka, benefits) of

Based on the Net Present Worth method, which option should be chosen and why? Option A costs $400 and generates additional revenue (aka, "benefits") of $70 for each of the next 8 years. Option B costs $500 and generates additional revenue of $90 for each of the next 8 years. Assume a 4.0% interest rate. Choose option A because its NPW of $71.29 is smaller than Option B's NPW of $105.95 Choose option B because its NPW of $105.95 is larger than Option A's NPW of $71.29 Choose option B because its NPW of $101.87 is larger than Option A's NPW of $68.55 Choose option A because its NPW of $68.55 is smaller than Option B's NPW of $101.87 All of the above
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