Question: For low discount rates, which choice creates more value for the firm? Multiple Choice Purchase Develop within DATA Cash Flows Year i A: Purchase NPV

For low discount rates, which choice creates more value for the

For low discount rates, which choice creates more value for the firm?

Multiple Choice

Purchase
Develop within

DATA Cash Flows Year i A: Purchase NPV A O NPVB 0 B: Develop Within -$370,000 Discount Rate 0% 0 -$370,000 $115,000 $130,000 $98,546 2% $88,507 1 $110,000 $75,000 4% $64,249 $69,948 2 $100,000 $75,000 6% $43,885 3 8% $100,000 $100,000 $20,080 $41,989 $21,516 $2,647 -$14,779 10% 4 $100,000 $125,000 12% -$1,711 -$21,700 -$40,072 5 $75,000 $125,000 14% -$30,904

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