Use the Table for the Question(s)below

question 103

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-The net present value (NPV) of project B is closest to:

• A)12.6
• B)23.3
• C)12.0
• D)15.0
• E)14.2

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating its sensitivity.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Price Elasticity

The responsiveness of the quantity demanded of a good to a change in its price.

Price Elasticity

An indicator of the degree to which the demand or supply of a product adjusts due to a variation in its cost.