Question: Consider the following two projects with cash flows in $: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3

Consider the following two projects with cash flows in $: 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 0 15% B -100 30 30 30 30 15% The NPV of project A is closest to:

$12.65. -$14.37. $42.94. $12.04.

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