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

question 12

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
$\begin{array} { l c c c c c c } \hline \text { Project } &\text { Year 0 } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } & \text { Discount } \\&\text { Cash Flow }&\text { Cash Flow }&\text { Cash Flow }&\text { Cash Flow }&\text { Cash Flow }&\text { rate }\\\hline \text { A } & - 100 & 40 & 50 & 60 & \text { N/A } & 0.15 \\\hline \text { B } & - 73 & 30 & 30 & 30 & 30 & 0.15 \\\hline\end{array}$
-The net present value (NPV) of project A is closest to?

• A) 15.0
• B) 12.6
• C) 42.9
• D) 12.0

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Definitions:

Article 9

Article 9 refers to a part of the Uniform Commercial Code (UCC) that regulates secured transactions, or transactions that involve a creditor taking a security interest in the debtor's property.

Mechanic's Lien

A security interest granted over an item of property to ensure the payment of the work performed and materials supplied in the building or repairing of that property.

UCC

This extensive legal framework, the Uniform Commercial Code, establishes the rules governing commercial transactions in the United States.

Tenders

Formal offers to carry out work, supply goods, or buy land, goods, or services at a specified price.