Use the Table for the Question(s) Below -The Net Present Value (NPV) for Project Beta Is Closest

question 41

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
$\begin{array} { l c c c c c c c c c } \hline \text { Project } & \begin{array} { c } \text { Year 0 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 1 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 2 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 3 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 4 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 5 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 6 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Year 7 } \\\text { C/F }\end{array} & \begin{array} { c } \text { Discount } \\\text { Rate }\end{array} \\\hline \text { Alpha } & - 79 & 20 & 25 & 30 & 35 & 40 & \text { N/A } & \text { N/A } & 15 \% \\\hline \text { Beta } & - 80 & 25 & 25 & 25 & 25 & 25 & 25 & 25 & 16 \% \\\hline\end{array}$
-The net present value (NPV) for project beta is closest to?

• A) $16.92
• B) $20.96
• C) $24.01
• D) $14.41

Understand the distinctions and applications of various costing methods and the importance of accurate costing in managerial decision making.

Understand the concept of manufacturing overhead, including its variable and fixed costs components.

Calculate the predetermined overhead rate based on various bases such as machine-hours, labor-hours, and direct labor cost.

Appreciate the complexity and accuracy of multiple overhead rate systems versus a single plantwide overhead rate.

---

Definitions:

Longitudinal Evidence

Data gathered from the same subjects repeatedly over a period of time to observe changes and developments, providing insight into effects and patterns that emerge over the long term.

Pessimist

An individual who tends to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Thwarted Need

A desire or requirement that has been prevented from being achieved or satisfied.

Power Motive

Wanting to have an impact on others.