Net Present Value Is Being Used to Break the Tie

question 31

Multiple Choice

Net present value is being used to break the tie among four otherwise equal projects.If the interest rate is 4%,which of these anticipated four-year flows would yield the greatest net present value?

• A)$10,000 in year 1;$11,000 in year 2;$12,000 in year 3;and $13,000 in year 4
• B)$13,000 in year 1;$12,000 in year 2;$11,000 in year 3;and $10,000 in year 4
• C)$10,000 in year 1;$10,000 in year 2;$13,000 in year 3;and $13,000 in year 4
• D)$11,000 in year 1;$11,000 in year 2;$12,000 in year 3;and $12,000 in year 4