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

question 55

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 alpha is closest to?

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

---

Definitions:

True Power

The actual power consumed by a circuit, calculated as the product of the voltage, current, and the cosine of the phase angle between them in a resistive load, measured in watts.

Series RL Circuit

An electrical circuit composed of resistors (R) and inductors (L) connected in a series configuration, affecting the phase and amplitude of the circuit's response.

Inductive Reactance

The resistance offered by an inductor to alternating current, which varies with the frequency of the current and the inductance, also measured in ohms.

Power Factor

A dimensionless number between 0 and 1 that represents the ratio of the real power flowing to the load to the apparent power in the circuit.