Question: Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash

Consider the following two projects:
Project
Year 0
Cash Flow
Year 1
Cash Flow
Year 2
Cash Flow
Year 3
Cash Flow
Year 4
Cash Flow
Discount
Rate
A
100
40
50
60
N/A
0.12
B
73
30
30
30
30
0.12
The net present value (NPV) of project B is closest to:
22.7
19.9
18.1
45.3

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