Question: Consider the following two projects: Projects Alpha & Beta Seven-Year Cash Flow Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Consider the following two projects: Projects Alpha & Beta Seven-Year Cash Flow Year Year 1 Year 2 Year 3 Year 4 Year 5

Consider the following two projects: Projects Alpha & Beta Seven-Year Cash Flow Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/ FC/ FC/ FC/ FC/ FC/ FC/ FC/F Rate Alpha -79 20 25 30 35 40 NA NA 12% Beta -80 25 25 25 25 25 25 25 13% The net present value (NPV) for project beta is closest to $36.68 $24.45 $30.57 $21.40 Consider the following two projects: Year 0 Project Cash Flow A - 100 B -73 Projects A & B Four-Year Cash Flow Year 1 Year 2 Year 3 Year 4 Cash Cash Cash Cash Flow Flow Flow Flow 40 50 60 N/A 30 30 30 30 Discount Rate 0.12 0.12 The net present value (NPV) of project A is closest to _____ 18.3 45.7 20.1 22.9

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