Using the Net Present Value Method the Total Present Value

question 33

Multiple Choice

Using the net present value method the total present value of cash inflows for Project A is $30000 and the total present value of cash inflows of Project B is $35000. If Project A and Project B both require an initial investment of $30000 and have the same economic life the project that should be accepted is

• A) Project A.
• B) Project B.
• C) neither; they are both the same.
• D) not capable of being calculated.

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Definitions:

Surrogacy

An alternative form of reproduction in which a woman (the surrogate) is impregnated and carries a fetus to term and agrees to turn the baby over to a woman, man, or couple who will raise it.

Genetic Relative

A family member related by blood, sharing common ancestors, and thus also sharing genes or hereditary traits.

Chimpanzee

A species of great ape native to the forests and savannahs of tropical Africa, known for its intelligence and complex social behaviors.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.