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

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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